Question

In this chapter we discussed segment and interim reporting. Based upon what you have read, what recommendations or changes would you suggest in order to provide greater clarity to investors? Please feel free to offer your suggestions and to back them up with some form pertinent reasoning.

Answer 1

Interim reports should include interim financial statements
(condensed or complete) for periods as follows:
(a) balance sheet as of the end of the current interim period and a
comparative balance sheet as of the end of the immediately
preceding financial year;
(b) statements of profit and loss for the current interim period and
cumulatively for the current financial year to date, with
comparative statements of profit and loss for the comparable
interim periods (current and year-to-date) of the immediately
preceding financial year;
(c) cash flow statement cumulatively for the current financial year
to date, with a comparative statement for the comparable year-
to-date period of the immediately preceding financial year.
For an enterprise whose business is highly seasonal, financial infor-
mation for the twelve months ending on the interim reporting date
and comparative information for the prior twelve-month period may be
useful. Accordingly, enterprises whose business is highly seasonal are
encouraged
You should disclose about matiriality
Same policies and same accounting standards sholud followed from year to year and any changes must be disclosed
Costs that are incurred unevenly during an enterprise's financial
year should be anticipated or deferred for interim reporting purposes if,
and only if, it is also appropriate to anticipate or defer that type of cost at
the end of the financial year.
A change in accounting policy, other than one for which the
transition is specified by an Accounting Standard, should be reflected by
restating the financial statements of prior interim periods of the current
financial year.
Revenues that are received seasonally or occasionally within a
financial year should not be anticipated or deferred as of an interim date
if anticipation or deferral would not be appropriate at the end of the
enterprise's financial year.