7.5 APPROACHES TO INTERIM REPORTING
7.5.1 Discrete versus Integral Views: The Recognition Perspective
Interim reporting theories typically polarize into two extreme views: the discrete approach (i.e., each interim interval is a stand-alone reporting period), and the integral approach (i.e., an interim period is an integral part of the annual period).
IAS 34 sees each financial period standing in its own right from the point of view of compliance with accounting principles. Therefore accounting policies that are valid for interim periods should be the same as those that apply in annual periods.104
Although Subtopic 270-10 (APB 28) acknowledges the existence of these two different views,105 it marries the integral view,106 although it also affirms the equivalence of the accounting principles in interim and annual periods, a fact that is the key point of the discrete view. Nevertheless, it concedes certain modifications to accounting principles to the extent that the purpose of interim information, i.e., relating to annual results, is better served.107