APB Opinion No. 28, Interim Financial Reporting, concluded that interim financial reporting should be viewed primarily in which

Question

4 years ago

6

APB Opinion No. 28, Interim Financial Reporting, concluded that interim financial reporting should be viewed primarily in which

of the following ways?
A. As useful only if activity is spread evenly throughout the year.B. As if the interim period were an annual accounting period.C. As reporting for an integral part of an annual period.D. As reporting under a comprehensive basis of accounting other than GAAP.

Business

1 answer:

Effectus [21] · Answer 1 · 2022-01-25T23:54:40+03:00

Answer: C. As reporting for an integral part of an annual period.

Explanation:

Interim Financial reporting should be treated as an important and complete part of the annual financial statement. It should follow all the generally accepted accounting principles. More reason for that is tax rates used in interim report is the same that is used in the annual financial statement as well (due to the estimate taken in the interim report). Many of the firms consider the interim financial reporting as an integral part of the annual report.