ASC 270 INTERIM REPORTING

Accounting Standards Codification (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. This chapter discusses issues applicable to both public and nonpublic reporting entities. It also describes issues applicable only to publicly traded companies. The usefulness of interim reports rests on the relationship to annual reports. The integral view is evident in how the Codification treats costs incurred in interim periods. Most costs and expenses are recognized in interim periods as incurred. However, a cost that clearly benefits more than one interim period is allocated among the periods benefited. Costs and expenses subject to year-end determination, such as discretionary bonuses and profit-sharing contributions, are assigned to interim periods in a reasonable and consistent manner to the extent they can be reasonably estimated.