Chapter 24, Problem 8ICA

To determine

Interim report: When the financial results are published for the year shorter than the fiscal year, this reporting is said to be an interim report. Three financial statements are presented in the interim report, Income statement, Balance sheet and Cash flow statement. These are basically not audited and are prepared on quarterly basis.

To determine the below case acceptable under IFRS? If yes, also determine how the treatment could affect comparisons to a GAAP company. “B N is working on an audit of an IFRS client. In his review of the client’s interim reports, he notes that the reports are prepared on a discrete basis. That is, each interim report is viewed as a distinct period.”

Given information: All the information related to B N is provided in the question document.