Deck 33: Interim Financial Reporting

Question 1

Which of the following is/are the most likely to be considered important in preparing an interim report?

A) Timely
B) Neutral
C) Verifiability
D) All of the above.

Answer 1

Timely

Question 2

Which of the following is a specific assumption of IAS 34?

A) Users expect the firm to be profitable in the interim
B) Users have complete financial statements of the prior reporting period
C) Users expect interim financial statements to be compliant with IAS 1 - Presentation of Financial Statements
D) IAS 34 does not make any assumptions about the users of the financial statements

Answer 2

Users have complete financial statements of the prior reporting period

Question 3

Which of the following is not a required inclusion in an interim report?

A) Selected explanatory notes
B) A condensed statement of cash flows
C) A condensed statement of other comprehensive income
D) A condensed statement of changes in equity
E) All of the above are required.

Answer 3

All of the above are required.

Question 4

Costs that are incurred unevenly during an entity's reporting period should be anticipated for interim financial purposes

A) Always
B) Sometimes
C) Never

Question 5

Consistent with both IAS 34 and IAS 8, a change in accounting policy should be applied by

A) Applying it to the current period only
B) Applying it to the current period and retrospectively restating the interim financial statements of the prior interim periods at least one fiscal year prior.
C) Applying it to the current period and retrospectively restating the interim financial statements of the prior interim periods at least two fiscal years prior.
D) Applying it to the current period and the prior periods of the current financial year, and the comparable interim periods of all prior financial years.

Question 6

All interim financial reports must be compliant with IAS 34.

Question 7

The preparation of interim financial reports generally requires less use of estimates than annual financial reports.

Question 8

In an interim report, presenting for the statement of financial position simply the amounts for total current assets, total non-current assets, total current liabilities, total non-current liabilities, and total equity would generally be considered insufficient.

Question 9

In preparing interim financial reports, the cost constraint must be considered. Explain the importance of the cost constraint as explained in the Conceptual Framework and how it applies to interim financial reporting. Consider the effects of presenting interim financial statements or a firm choosing not to do so.