Case 3.1 Your audit senior, Quinn, is reviewing the second-quarter financial statements prepared by Holder, Inc.

Many publicly traded companies report summarized financial information at periodic interim dates in considerably less detail than that provided in annual financial statements. While this information provides more timely information than would result if complete financial statements were issued at the end of each interim period, the timeliness of presentation may be partially offset by a reduction in detail in the information provided. As a result, certain guides as to minimum disclosure are desirable. (It should be recognized that the minimum disclosures of summarized interim financial data required of publicly traded companies do not constitute a fair presentation of financial position and results of operations in conformity with generally accepted accounting principles [GAAP].) If publicly traded companies report summarized financial information at interim dates (including reports on fourth quarters), the following data should be reported, as a minimum:

a. Sales or gross revenues, provision for income taxes, extraordinary items (including related income tax effects), net income, and comprehensive income

b. Basic and diluted earnings per share data for each period presented, determined in accordance with the provisions of Topic 260…

Based on the information above, Holder’s Inc. should report Earnings per share on their interim financial statements. Thank you for asking for my assistance with this. Please let me know if you need any additional information.

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