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(VALIX) Interim
(VALIX) Interim
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controst to annu finonei reporting
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INTERIM FINANCIAL REPORTING
Interim financial reporting means the
preparation and
presentation of financial statements for a period of less than one
Philippine jurisdiction
The Securities and Exchange Commission and Philippine Stock
Exchange require entities covered by the reportorial
requirements of Revised Securities Act to file quarterly interim
financial reports within 45 days after the end of each of the
first three quarters.
227
on
interim financial reporting
Two views
result to interimincome
Using the integral view would which
would be more indicative of the annual income and thus
useful
in predicting future operations and making informed decisions.
is that each interim
The independent view period is
considered a discrete or separate accounting period with status
equal to a fiscal year.
228
of an
interim financial report
34, paragraph 8, provides that an interim financial
PAS
shall include, at a
repor
minimum, the following
b.
Condensed.statement statementof comprehensive income
Condensed statement of changes in equity
C.
d.
Condensed statement of cash flows
229
Selected explanatory notes
Income statement
2.
231
Illustration - Half-yearly
232
Inventories
PAS 34 provides
Paragraph 25 of Appendix B offinancial that
reporting inventories
by the
are measured for interim
same
principles as at financial year end.
This simply means that inventories
shall be measured
at the
net realizable value even for interim
lower of cost or purposes.
The cost of the inventory may be estimated using the
gross
profit method or retail inventory method.
lower than
Accordingly, if the net realizable value is cost, a
loss on inventory writedown shall be
recognized regardless
of whether the writedown is temporary or nontemporary.
234
Seasonal, cyclical or occasional revenue
be
dividend revenue is
For example, not recognized until
declared because even when highly predictable based on past
experience, the dividend is not an obligation of the entity
until it is legally declared.
Uneven costs
Year-end bonuses
235
Recognition of bonus
A bonus is antitipated for interim purposes if and
Only if.
Irregular costs
236
acome *a
period me ees sbal e the
nnnal Taportne
arssrat 12 f Apendix B :f PA3 3I stste that the inie-
ariad ineorme ta axpenss is acerte aing the annual
V InCO /
e
estato
istouarte
Second uarter 000
d eazte O00O0 *
otlcre i
t *uart . a00 C0
econd euarter 00O0
Cumuatveineometarior
ee euae s.-e ddo C o
-e tztrar=a*oowrr 2
-
each Of those tax YearS.
.sue.
a
o June 3O. Do2O is as toLows
s aaa as a se e ao e. e
. e eoe taeenee t eac ouattet f te nan
reporting year is computed as folows
tenast 00 00
econd ouarter 2 00 0
eeuas a 25to
ousaenaste 00000
aaee azeszens
s in aounane alie
A CEZEU Èn ZCCOIDGDE PCÈ CE ThET CE È wEiC
e-
d ea =a a
aCCoUnÍing pOliCy 8ppÎi fo à partieblar cloee o
te
ż. ti =i a
ansactions within a sinele financial year would reeu in
tara aleten dess cheed oetne a
and complicafed analysis and understandability of inferim
-rnton
17-10 Multiple choice (PAS 34)
QUESTION
regarding interim reporting?
1. Which statement is true
required for interim financial
a.
The independent view is
statements.
on 8 quarterly
Interim reports are required basis.
b. Interim reports are
not required.
Interim reports require the preparation
of only
statement of earnings and a statement of financial
position.
244
5. An
entity is proparing interim financial statements for
months ended
June 30, 2018. In the interim financial
six
statements for six months, a statement of financial
position on June. 30, 2018 and a statement of
comprehensive income for six months ended June 30, 2018
shall be presented. In addition, all of the following shall
be presented, except
ANSWER 17-10
1. C
3. d
4, a
5. 8
245
Multiple choice (IFRS)
QUESTION 17-11
246
mm immhmmn
ariad Atgbat ta Ostabe
,V h
tarm zesort
H ae
statements ene
m m
enfnnieenenn
mes en ane ne
oeementinrtionioninermtnanciareor
* trne
t f an t en
An nteim fnenia epot u conis
Al i te sttnen a
ANSER. 3*.
choice (AICPA Adapted)
QUESTION 17-12 Multiple
Monthly basis
Quarterly basis
d. Nine-month basis
Interim reporting
b. Year-end reporting
C. Interim reporting and year-end reporting
d. Neither interim reporting nor year-end reporting
248
Adver nuedhlb dered od
an approprinfe eXpense in ench Derio for
-ti= eporane
n.
s =
eimer nterm zeportng nor yeacand zeportine
An iventry e om a merket pri dene o
t tae a aà
- -
d-
shoul
-
20re 0 1n the firat gu rter by the a m0 nt of th
-
amo e de h
e aiee in te i ava and ea in
die aP i d
ee ee ee
-
tatement
two quarters.
the third
C.
The rate applicable during quarter
the third quarter
multiplied by four times pretax
earnings.
d. One.half of the difference between total estimated
and the income tax for the
annual income tax expense
first two quarters.
described as emphasizing
ANSWER 17-12
b 6. b
d 7. C
8. b
9. a
d 10.
250