Part Two: FASB Accounting Standards Codification $($ASC$)$Identify the correct codification topic, subtopic, section, and paragraph for each question to support your response. There is a total of four.Evaluate a scenario regarding interim reporting$($ASC$13-1).$ Include the following details in your response:Determine if the codification allows for exceptions at interim reporting dates.Determine what effect differences in interim reporting have on evaluation methods employed by analysts and other users.Explain whether it is appropriate to prorate an extraordinary loss in the second quarter over the three remaining quarters of the fiscal year $($ASC$13-3).$Determine if interim periods are considered standalone financial statements or an integral part of the annual financial statements under current Generally Accepted Accounting Principles $($GAAP$)($ASC$13-5).$Explain if you agree or disagree with how interim periods are handled by GAAP $($ASC$13-5).$Explain whether additional disclosure requirements are necessary when a company presents only the annual income statement as opposed to a separate fourthquarter interim report $($ASC$13-6).$

ASC$13-1$:

Practices vary in determining costs of inventory. For example, cost of goods produced may be determined based on standard or actual cost, while cost of inventory may be determined on an average, first$-$in$,$ first$-$ou $($FIFO$),$ or last$-$in$,$ first$-$out $($LIFO$)$ cost basis. While entities generally use the same inventory pricing methods, and make provisions for write$-$downs to market, at interim dates as at annual inventory dates, does the Codification allow for exceptions at interim reporting dates? What effect might differences in interim reporting have on evaluation methods employed by analysts and other users?

ASC $13-3$:

A company incurred an extraordinary loss in the second quarter and has prorated this loss over the three remaining quarters in the current fiscal year. Is this appropriate? Why or why not?

ASC $13-5$:

Are interim periods considered stand$-$alone financial statements or are they considered an integral part of the annual financial statements under current GAAP? Do you concur with this position? Why or why not?

ASC $13-6$:

If a company does not present a separate fourth$-$quarter interim report for its incone statement, but presents only the annual income statement at that time, are there any additional disclosure requirements? If so$,$ what are they?