In considering interim financial reporting, how does the profession conclude that such reporting should be viewed?
A) As a "special" type of reporting that need not follow generally accepted accounting principles.
B) As useful only if activity is evenly spread throughout the year so that estimates are unnecessary.
C) As reporting for a basic accounting period.
D) As reporting for an integral part of an annual period.

Question

Quizplus · Accepted Answer

Interim financial reporting is viewed as reporting for an integral part of an annual period. It provides information on the financial performance and position of a company during a shorter period of time, usually a quarter or a half year, which is useful for investors, creditors, and other stakeholders. The financial statements prepared for interim reporting should follow the same accounting principles and be subject to the same audit or review procedures as the annual financial statements. Therefore, interim reporting is an important and essential part of financial reporting.

In Considering Interim Financial Reporting, How Does the Profession Conclude