What is Interim reporting?
In short
Interim reporting is financial reporting for periods shorter than a year, usually quarters. Under US Generally Accepted Accounting Principles (GAAP), each interim period is treated as an integral part of the annual period.
Key takeaways
- Costs that clearly benefit several quarters, such as annual property tax, are allocated across them.
- Income tax expense uses the estimated annual effective tax rate.
- Temporary inventory declines expected to recover within the year need not be recognized at interim.
Where it's tested
FAR: Public Company Reporting, Segments & Interim Reporting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under US GAAP, an interim period is viewed primarily as: