Interim reporting
There is ongoing discussion as to the proper method of reflecting results of operations at interim dates. Accordingly, IFRS has made recommendations regarding interim financial reporting.
Instructions
a) Discuss generally how revenue should be recognized at interim dates and specifically how revenue should be recognized for industries subject to large seasonal fluctuations in revenue and for long-term contracts using the percentage-of-completion method.
b) Discuss generally how product and period costs should be recognized at interim dates. Also discuss how inventory values should be treated at interim dates.
c) Discuss how the provision for income taxes is calculated and reported in interim financial statements.

Question

Quizplus · Accepted Answer

The Answer of Interim reporting
There is ongoing discussion as to the proper method of reflecting results of operations at interim dates. Accordingly, IFRS has made recommendations regarding interim financial reporting.
Instructions
a) Discuss generally how revenue should be recognized at interim dates and specifically how revenue should be recognized for industries subject to large seasonal fluctuations in revenue and for long-term contracts using the percentage-of-completion method.
b) Discuss generally how product and period costs should be recognized at interim dates. Also discuss how inventory values should be treated at interim dates.
c) Discuss how the provision for income taxes is calculated and reported in interim financial statements.

Interim Reporting There Is Ongoing Discussion as to the Proper Method of Method