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26 Cards in this Set
- Front
- Back
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Interim financial reporting |
means the preparation and presentation of financial statements for a period of less than one year. |
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Interim financial reports |
may be presented monthly, quarterly, or semiannually. |
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Quarterly interim reports |
are the most common interim financial report. |
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publicly traded entities |
are encouraged to provide interim financial reports at least semiannually and such reports are to be made available not later than 60 days after the end of interim period. |
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"condensed" |
means that each of the headings and subtotals presented in the entity's most recent annual financial statements is required but there is no requirement to include greater detail unless this is specifically required. |
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d. whenever the entity wishes |
Interim financial reports shall be published a. once a year at any time during the year. b. within a month of the half year-end c. on a quarterly basis d. whenever the entity wishes |
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b. the year-end financial statements' compliance with IFRS is not affected |
If an entity does not prepare interim financial reports a. the year-end financial statements are deemed not to comply with IFRS. b. the year-end financial statements' compliance with IFRS is not affected c. the year-end financial statements shall not be acceptable under local jurisdiction. d. interim financial reports shall be included in the year-end financial statements. |
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b. a condensed set of financial statements and selected notes |
interim financial reports shall include as a minimum a. a complete set of financial statements b. a condensed set of financial statements and selected notes c. a condensed statement of financial position and an income statement d. a condensed statement of financial position, income statement and statement of cash flows. |
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d. accounting policies and explanatory notes |
An interim financial report shall include as a minimum all of the following components, except a. condensed statement of financial position and statement of comprehensive income b. condensed statement of cash flows. c. condensed statement of changes in equity d. accounting policies and explanatory notes |
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d. statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity. |
Which basic financial statements are prepared as a minimum for interim financial reporting? a. statement of financial position and income statement b. statement of financial position, income statement and statement of comprehensive income c. statement of financial position, statement of comprehensive income and statement of cash flows d. statement of financial position, statement of comprehensive income, statement of cash flows and statement of changes in equity. |
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c. have access to the most recent annual report |
There is a presumption that anyone reading interim financial reports shall a. understand all international financial reporting standards b. have access to the records of the entity c. have access to the most recent annual report d. not make decisions based on the report |
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c. an interim financial report must consists of a condensed set or complete set of financial statements. |
Which statement in relation to an interim report is true? a. an interim financial report must consists of a complete set of financial statements b. an interim financial report must consists of a condensed set of financial statements c. an interim financial report must consists of a condensed set or complete set of financial statements. d. all of these statements are true. |
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a. at least at the end of the half year and within 60 days. |
Publicly traded entities are encouraged to provide interim financial reports a. at least at the end of the half year and within 60 days. b. within a month of the half year-end c. on a quarterly basis d. whenever the entity wishes |
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b. interim reports are not required |
Which statement is true regarding interim reporting? a. interim reports are required on a quarterly basis b. interim reports are not required c. interim reports require the preparation of only an income statement and a statement of financial position. d. all of these statement are true. |
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b. disclosure of financial information for the latest and comparative 12-month period in addition to the interim report |
When the business is highly seasonal, what does the standard suggest? a. additional note about the seasonal nature b. disclosure of financial information for the latest and comparative 12-month period in addition to the interim report c. additional disclosure in the accounting policy note d. no additional disclosure |
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b. quarterly basis |
Interim financial statements are usually presented on a a. monthly basis b. quarterly basis c. semiannual basis d. nine-month basis |
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d. in the second quarter |
For interim reporting, an inventory loss from a market decline in the second quarter shall be recognized a. in the fourth quarter b. proportionately over the last quarters c. proportionately in each of the four quarters d. in the second quarter |
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a. interim reporting |
for external reporting, it is appropriate to use estimated gross profit rate to determine the cost of goods sold for
a. interim reporting b. year-end reporting c. interim reporting and year-end reporting d. neither interim reporting nor year-end reporting |
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c. recognized in the second quarter |
For interim financial reporting, an expropriation gain occuring in the second quarter shall be a. recognized ratably over the last three quarters b. recognized ratably over all four quarters c. recognized in the second quarter d. disclosed in the second quarter |
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d. neither interim reporting nor year-end reporting |
Advertising costs incurred shall be deferred to provide an appropriate expense in each period for a. interim reporting b. year-end reporting c. interim reporting and year-end reporting d. neither interim reporting nor year-end reporting |
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c. in the second quarter |
Due to a decline in market price in the second quarter, an entity incurred an inventory loss. The market price is expected to return to previous level by the end of the year. At the end of the year, the decline had not reversed. When should the loss be reported in the interim income statement? a. ratably over the second, third and fourth quarters b. ratably over the third and fourth quarters c. in the second quarter d. in the fourth quarter |
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b. the estimated tax for the first three quarters based on an annual interest rate similar estimate for the first two quarters |
How is income tax expense for the third quarter interim period computed? a. the annual rate multiplied by the third quarter income b. the estimated tax for the first three quarters based on an annual interest rate similar estimate for the first two quarters c. the rate applicable during the third quarter multiplied by three d. cumulative income tax for three quarters |
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a. timeliness over reliability |
Conceptually, interim financial statements can be described as emphasizing a. timeliness over reliability b. reliability over relevance c. relevance over comparability d. comparability over neutrality |
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c. the same accounting principles used for the annual report should be employed for interim report |
Which statement about interim reporting is true? a. all entities that issue an annual report must issue interim financial report b. a complete set of financial statements must be presented for an interim period c. the same accounting principles used for the annual report should be employed for interim report d. all of these statements are true |
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c. events after the end of the reporting period |
Entities should disclose all of the following in interim financial report, except a. basic and diluted earnings per share b. change in accounting policy c. events after the end of the reporting period d. seasonal revenue, cost of expenses |
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selected explanatory notes |
are designed to provide an explanation of significant events and transaction arising since the last annual financial statements |
