Interim Reporting

Expected Questions Tracker

 Income and expense for the interim period

Interim Reporting

 Preparation of financial statement of less than one year.

 Not required by PAS 34 (optional).

 Conform with PFRS and PAS.

 Include, at a minimum, the following:

 Condensed statement of financial position
 Condensed statement of comprehensive income
 Condensed statement of changes in equity
 Condensed statement of cash flow
 Selected explanatory notes
Interim Reporting
Systematic Expense – Expenses that are incurred through passage of time, such as,
 Insurance expense
 Interest expense
 Depreciation expense ALLOCATE
 Amortization expense EQUALLY
 Rent expense
 Property taxes expense
Outright Expense – Expenses that are no future benefits will be provided and immediately expensed:
 Casualty losses
 Research and development
 Advertising expense NOT
 Expropriation expense
 Impairment losses of PPE, Intangible Asset and Investment Property
ALLOCATED
 Loss on sale of non operating assets (e.g., PPE, Investments)
 Routinary (ordinary) repair expense
Cause and Effect Expense – a.k.a. matching principle expense. Expense that are being match with revenue. Expenses that
increases as revenue increase and decreases as revenue decrease:
 Commission expense ALLOCATE
 Income taxes expense
NOT EQUALLY
 Bad debt expense
 Bonus expense
 Outright
50,000 Allocate
Outright
125,000 Allocate
Outright
150,000 Allocate
300,000 Allocate
Outright
Loss on disposal 200,000
Prop. Taxes (80K/2) 40,000
Total 240,000
Cause and Effect Allocation

Cumulative sales / profit as of the interim period XX

Times: Percentage X%
Cumulative expense – as of interim period XX
Less: Expenses recorded in the previous interim (XX)
Expense for the current interim period XX
 1st Interim
Cumulative sales / profit as of the interim period 20,000,000

Times: Percentage 5%
Cumulative expense – as of interim period 1,000,000
Less: Expenses recorded in the previous interim (-0-)
Expense for the current interim period 1,000,000
 2nd Interim
Cumulative sales / profit as of the interim period (20M+15M) 35,000,000
Times: Percentage 5%
Cumulative expense – as of interim period 1,750,000
Less: Expenses recorded in the previous interim (1,000,000)
Expense for the current interim period 750,000
 3rd Interim
Cumulative sales / profit as of the interim period (20M+15M+25M) 60,000,000
Times: Percentage 5%
Cumulative expense – as of interim period 3,000,000
Less: Expenses recorded in the previous interim (750K+1.00M) (1,750,000)
Expense for the current interim period 1,250,000
 4th Interim
Cumulative sales as of the interim period (20M+15M+25M+40M) 100,000,000
Times: Percentage 5%
Cumulative expense – as of interim period 5,000,000
Less: Expenses recorded in the previous interim (1.00M+.750M+1.25M) (3,000,000)
Expense for the current interim period 2,000,000
 1st Interim
Cumulative profit as of the interim period 60,000
Times: Percentage 40%
Cumulative expense – as of interim period 24,000
Less: Expenses recorded in the previous interim (-0-)
Expense for the current interim period 24,000
 2nd Interim
Cumulative profit as of the interim period (60K+70K) 130,000
Times: Percentage 40%
Cumulative expense – as of interim period 52,000
Less: Expenses recorded in the previous interim (24,000)
Expense for the current interim period 28,000
 3rd Interim
Cumulative profit as of the interim period (60K+70K+40K) 170,000
Times: Percentage 45%
Cumulative expense – as of interim period 76,500
Less: Expenses recorded in the previous interim (24K + 28K) (52,000)
Expense for the current interim period 24,500
Expected Questions Tracker

 Income and expense for the interim period