Financial 1 - Interim Financial Reporting

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Interim Financial Reporting
General

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Not required under US. GAAP or IFRS. In the US is generally concerned with the quarterly reports that public companies must file with the SEC.

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INTERIM FINANCIAL REPORTING
Matching of Revenues and Expenses

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General Rule in interim financial statements is that costs and expenses that clearly benefit more than one period should be properly allocated to the periods affected.

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INTERIM FINANCIAL REPORTING
US GAAP VS IFRS
UNDER IFRS Interi Financial Statements are required to include -

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1. Condensed balance Sheets.
2. Condensed Statements of Comprehensive Income for the current interim period,
3. Condensed Statements of changes in equity cumulatively for the current financial ye and for the comparable ytd period of the mediately preceding financial year.
4. Condensed statements of cash flows for the current financial year-to-date period of the immediately preceding financial year

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INTERIM FINANCIAL REPORTING
Income Taxes

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Income Tax expense is estimated each quarter. The general rule is to multiply the YTD income by the estimated effective tax rate and subtract the result from the provision included in the previous quarter. Estimate of the Effective tax rate expected to be applicable for the full fiscal year.