Wiley GAAP 2019

11ASC 270 INTERIM REPORTING

PERSPECTIVE AND ISSUES

Subtopic

ASC 270, Interim Reporting, contains one subtopic:

• ASC 270-10, Overall, that provides guidance on:
  • Accounting and disclosure issues for reporting on periods less than one year, and
  • Minimum disclosure requirements for interim reporting for publicly traded companies.

Overview

The term “interim reporting” refers to financial reporting for periods of less than a year. The Codification does not mandate interim reporting. However, the 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 the Codification for annual financial statements.

Objective.

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 informed decisions in a timely manner. SEC filings on Form 10-Q are due in no more than 45 days after period end. The demand for timely information means that interim data will often be more heavily impacted by estimates and assumptions.

Integral Approach.

Historically, there have been two competing views of interim reporting. Under the integral view, the interim period is considered an integral part of the annual accounting period. It thus follows that annual ...