Perspective and Issues

Definitions of Terms

Concepts, Rules, and Examples

Differentiation between Public and Nonpublic Companies

Part I—Requirements Applicable to All Reporting Entities


Product Costs and Direct Costs

Other Costs and Expenses

Income Taxes

Fair Value of Financial Instruments

Discontinued Operations and Extraordinary Items



Accounting Changes

Change in accounting principle

Change in accounting estimate

Change in reporting entity


Part II—Requirements Applicable to Public Reporting Entities

Quarterly Reporting to the SEC

Summarized interim financial data

Changes in accounting principle

Fourth quarter adjustments

Earnings per share

Accelerated reporting requirements


The term “interim reporting” refers to financial reporting for periods of less than a year. GAAP itself does not mandate interim reporting; however, in the United States the Securities and Exchange Commission (SEC) requires public companies to file quarterly summarized interim financial data on its Form 10-Q. The level of detail of the information required in those interim reports is substantially less than is specified under GAAP for annual financial statements.

The objective of interim reporting is to provide current information regarding enterprise performance to existing and prospective investors, lenders, and other financial statement users. This enables users to act upon relevant information in making ...

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