Which of the following statements about interim reporting is false?
A)If a company reports year-to-date financial information for the current year, it also must report the last twelve month-to-date information.
B)Under some circumstances, a company can restate the financial information of an earlier current-year quarter.
C)The gross profit method may be used for interim periods when taking a physical inventory would be too costly.
D)A company should allocate a portion of its estimated year-end inventory adjustment to each interim period.

Question

Which of the following statements about interim reporting is false?
A)​If a company reports year-to-date financial information for the current year, it also must report the last twelve month-to-date information.
B)​Under some circumstances, a company can restate the financial information of an earlier current-year quarter.
C)​The gross profit method may be used for interim periods when taking a physical inventory would be too costly.
D)​A company should allocate a portion of its estimated year-end inventory adjustment to each interim period.

Quizplus · Accepted Answer

Interim reporting does not require companies to report the last twelve month-to-date information when they report year-to-date financial information for the current year. This statement is false because interim reporting typically focuses on quarterly or half-yearly updates without the necessity of providing rolling twelve-month data alongside the current year-to-date figures.

Which of the Following Statements About Interim Reporting Is False