APB Opinion No. 28 (FASB ASC 270) indicates that
A) The discrete view is the most appropriate approach to take in preparing interim financial reports.
B) The same accounting principles used for the annual report should be employed for interim reports.
C) All companies that issue an annual report should issue interim financial reports.
D) The three basic financial statements should be presented each time an interim period is reported upon.

Question

Quizplus · Accepted Answer

APB Opinion No. 28 (FASB ASC 270) states that the same accounting principles used for the annual report should be employed for interim reports. However, companies may need to make adjustments for significant events or transactions that occur during the interim period. The opinion also allows for certain disclosures to be condensed or omitted in the interim reports. The discrete view is another approach to preparing interim reports, but it is not necessarily the most appropriate for all companies. The requirement to issue interim reports depends on various factors such as the type of securities issued and the stock exchange regulations. Finally, while the three basic financial statements (income statement, balance sheet, and statement of cash flows) should be presented in the annual report, there is no requirement to present all three statements in every interim report.