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Interim Report

In:

Submitted By hungphat
Words 324
Pages 2
To: Quinn <q_n12@gmail.com>
From:
Date: 09/05/2014
Subject: Whether interim financial statements are required to include earning per share amount

Background

Holder, Inc., a publicly traded company recently prepared and sent the second-quarter financial statements to Quinn, the audit senior. After reviewing the financial statements, Quinn thinks the client may have omitted an important item.

Background

Holder, Inc., a publicly traded company recently prepared and sent the second-quarter financial statements to Quinn, the audit senior. After reviewing the financial statements, Quinn thinks the client may have omitted an important item.

Issues: Whether interim financial statements are required to include earning per share amount?

ASC 270-10-05-1 and 2 addresses that publicity trade companies must issues an interim financial statements covering periods of less than a year to enhance the timeliness of financial information. Moreover, the interim financial statements provide investors and creditors with additional insight on the seasonality of business operations that might otherwise get lost in annual reports. 05-1. The Interim Reporting Topic clarifies the application of accounting principles and reporting practices to interim financial information, including interim financial statements and summarized interim financial data of publicly traded companies issued for external reporting purposes... This information may be issued on a monthly or quarterly basis or at other intervals and may take the form of either complete financial statements or summarized financial data. 05-2. The determination of the results of operations on a meaningful basis for intervals of less than a full year presents inherent difficulties.

ASC 270-10-50-1 shows what should be included in the interim financial statement at minimum: 50-1-b. Basic and diluted earnings per share data for each period presented, determined in accordance with the provisions of Topic 260.

Conclusion:
Therefore, in the interim financial statement must include earning per share amount and Quinn was right about the client had omitted an important item.

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