Definitions of Terms

Discrete view

An approach to measuring interim period income by viewing each interim period separately.

Estimated annual effective tax rate

An expected annual tax rate which reflects estimates of annual earnings, tax rates, tax credits, etc.

Integral view

An approach to measuring interim period income by viewing each interim period as an integral part of the annual period. Expenses are recognized in proportion to revenues earned through the use of special accruals and deferrals.

Interim financial report

An interim financial report refers to either a complete set of financial statements for an interim period (prepared in accordance with the requirements of IAS 1), or a set of condensed financial statements for an interim period (prepared in accordance with the requirements of IAS 34).

Interim period

A financial reporting period shorter than a full financial year (e.g., a period of three or six months).

Last-twelve-months reports

Financial reporting for the twelve-month period which ends on a given interim date.

Liquidation of LIFO inventories

The situation which occurs when quarterly sales exceed purchases and base-period costs are released into cost of goods sold.

Seasonality

The normal, expected occurrence of a major portion of revenues or costs in one or two interim periods.

Year-to-date reports

Financial reporting for the period which begins on the first day of the fiscal year and ends on a given interim date.