Interim - For interim financial statements most methods of...

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For interim financial statements most methods of recording revenues, costs, expenses and reporting are the same as those used for annual financial statements. Concentrate on the exceptions and required disclosures for studying interim financial statements. Inventory Disclosures: • Disclose if the gross profit method or another method different from the year-end method of valuing inventories is used at the interim date. • If there is a LIFO layer liquidation and it is deemed to be temporary and it will be replaced by year- end, use the NIFO (next-in first-out) method to determine the cost of goods sold. I.e., expected replacement cost. • Market declines that are deemed to be temporary need not be recognized at the interim date. • Market declines that have been recognized in prior interim financial statements can be recovered in subsequent interim financial statements of the same year. Other Disclosures :
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