How should seasonal revenues be reported in an interim report?
A) Disclose the seasonal nature of business operations, and include a pro forma report for the next 12-month period.
B) Disclose the seasonal nature of business operations but do not include other reports supplemental to the interim report.
C) Disclose the seasonal nature of business operations, and consider a report for the 12-month period ended at the interim date to supplement the interim report.
D) The financial statements should be adjusted to reflect the assumption that no seasonal revenues could be recognized.
E) Seasonal revenues have no particular reporting requirement.

Question

Quizplus · Accepted Answer

Disclosing the seasonal nature of business operations and considering a report for the 12-month period ended at the interim date provides a more comprehensive view of the company's performance, accommodating the effects of seasonality.

How Should Seasonal Revenues Be Reported in an Interim Report