Sino Group, a publicly traded company, is preparing the interim financial data which it will issue to its shareholders at the end of the first quarter of the 2018-2019 fiscal year. Sino's financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year.
Sales revenue.....................................................¥60,000,000
Cost of goods sold................................................36,000,000
Variable selling expenses..........................................1,000,000
Fixed selling expenses.............................................3,000,000
Included in the fixed selling expenses was the single lump-sum payment of ¥2,000,000 for television advertisements for the entire year.
Instructions
a. Sino Group must issue its quarterly financial statements in accordance with IFRS regarding interim financial reporting.
1. Explain whether Sino should report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period.
2. State how the sales revenue, cost of goods sold, and fixed selling expenses would be reflected in Sino Group's quarterly report prepared for the first quarter of the 2018-2019 fiscal year. Briefly justify your presentation.
b. What financial information, as a minimum, must Sino Group disclose to its shareholders in its quarterly reports?