Question

Corporation: The company is also considering structuring its business as a corporation, but is aware that there are a lot of complex issues to consider when accounting for an incorporated entity. The company is concerned about the following key areas: B. What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS. C. Generate a hypothetical financial statement illustrating what that interim reporting entails. Ensure all information is entered accurately. D. Determine if the interim reporting requirements are the same under GAAP and IFRS. Provide an example to support your response. E. The company also heard that they may have to report some of their business segments separately if they opt to incorporate. 1. Appraise one of the processes used to identify which segments would have to be reported separately. Provide examples to support your response. 2. How is this process effective in supporting transparency in financial reporting? Defend your response. 3. Provide suggestions to improve this process in an effort to sustain transparency. Defend your rationale

Answer 1

Solution:-

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B.What interim reporting requirements would the company have as a corporation? Describe the guidance related to interim financial statements under GAAP and IFRS:-

Accountingtools.com defines interim reporting as the reporting of the financial results of any period that is shorter than a fiscal year. Usually required for any publicly held company, and typically involves the issuance of three quarterly financial statements each year. These statements include a balance sheet, income statement, and statement of cash flows.

According to the U.S. Securities and Exchange Commission (SEC), GAAP nor IFRS requires interim reporting; however, both provide guidance in situations when interim reporting is required or when an entity elects to report on an interim basis. GAAP and IFRS both require interim reporting be based on the same accounting principles that are used to prepare the annual financial statements. IFRS considers interim periods as discrete account periods, while GAAP considers interim periods as a component of an annual period.

$\bg_green Note:-$As per HOMEWORKLIB RULES if more than one question is posted than we liable to answer only one question.

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