# ASC 270-10-45: Interim Reporting — Overall — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/270/10/#45-other-presentation-matters) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:187da872f70419ee56185aefc2b7a34c663bc3ab7b3c53f71779d43a7068b381 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 270-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/270/10/#45-other-presentation-matters) SEC content: no #### Accounting Principles and Practices ##### [270-10-45-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-1) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:fb0ae66e308fa291a98789a2a84dab3363f3deac1098837ed31d0ad583c0e8e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interim financial information is essential to provide investors and others with timely information as to the progress of the entity. The usefulness of such information rests on the relationship that it has to the annual results of operations. Accordingly, each interim period should be viewed primarily as an integral part of an annual period. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The usefulness of interim financial statements and notes in accordance with generally accepted accounting principles (GAAP) rests on the relationship that they have to the annual results of operations. Each interim period should be viewed primarily as an integral part of an annual period. ##### [270-10-45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:a9bc899963deee5bd6ee4557e0a4cd7b69140db009ae85042b150b7c84ce3e63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In general, the results for each interim period shall be based on the accounting principles and practices used by an entity in the preparation of its latest annual financial statements unless a change in an accounting practice or policy has been adopted in the current year (see paragraphs [270-10-45-12 through 45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) ). However, certain accounting principles and practices followed for annual reporting purposes may require modification at interim reporting dates so that the reported results for the interim period may better relate to the results of operations for the annual period. Paragraphs [270-10-45-4 through 45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-4) sets forth the modifications that are necessary or desirable at interim dates in accounting principles or practices followed for annual periods. #### Revenue ##### [270-10-45-3](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:98019fa74019f2f0594176d5ce6ba0e624a6a9f1c3c376b94b4e2d7097c09cd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Revenue](https://asc.understandingaccounting.org/glossary/r/#revenue "Inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.") from products sold or services rendered shall be recognized as the entity satisfies a [performance obligation](https://asc.understandingaccounting.org/glossary/p/#performance-obligation "A promise in a contract with a customer to transfer to the customer either: A good or service (or a bundle of goods or services) that is distinct A series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.") by transferring a promised good or service to a [customer](https://asc.understandingaccounting.org/glossary/c/#customer "A party that has contracted with an entity to obtain goods or services that are an output of the entity's ordinary activities in exchange for consideration."). Those revenues shall be recognized during an interim period on the same basis as followed for the full year in accordance with Topic 606 on revenue from [contracts](https://asc.understandingaccounting.org/glossary/c/#contract "An agreement between two or more parties that creates enforceable rights and obligations.") with customers. For example, revenues from a long-term construction contract with a customer that includes performance obligations that the entity satisfies over time in accordance with paragraphs [606-10-25-27 through 25-29](https://asc.understandingaccounting.org/asc/606/10/#606-10-25-27) shall be recognized in interim periods on the same basis followed for the full year. Losses projected on contracts within the scope of Subtopic 605-35, in accordance with paragraphs [605-35-25-45 through 25-49](https://asc.understandingaccounting.org/asc/605/35/#605-35-25-45) , shall be recognized in full during the interim period in which the existence of such losses becomes evident. #### Costs and Expenses ##### [270-10-45-4](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8c406be039ebbe649a408a1c46b140e87ee11674641039abc361649b6fa813e4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Costs and expenses for interim reporting purposes may be classified as either of the following: 1. a Costs associated with revenue - those costs that are associated directly with or allocated to the products sold or to the services rendered and that are charged against income in those interim periods in which the related revenue is recognized 2. b All other costs and expenses - those costs and expenses that are not allocated to the products sold or to the services rendered and that are charged against income in interim fiscal periods as incurred, or are allocated among interim periods based on an estimate of time expired, benefit received, or other activity associated with the periods. ##### [270-10-45-5](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:01731ba642d1db6fa9ce7f2be64cb641458f81e889ec48f6d8cf61953d8c5d99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those costs and expenses that are associated directly with or allocated to the products sold or to the services rendered for annual reporting purposes (including, for example, material costs, wages and salaries and related fringe benefits, manufacturing overhead, and warranties) shall be similarly treated for interim reporting purposes. ##### [270-10-45-6](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0f76ce23cfd4611c684d3fba8e436c1f959d463455c969a596e181d08d88eaea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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-out (FIFO), or last-in, first-out (LIFO) cost basis. While entities generally shall use the same inventory pricing methods and make provisions for writedowns at interim dates on the same basis as used at annual inventory dates, the following exceptions are appropriate at interim reporting dates: 1. a Some entities use estimated gross profit rates to determine the cost of goods sold during interim periods or use other methods different from those used at annual inventory dates. These entities shall disclose the method used at the interim date and any significant adjustments that result from reconciliations with the annual physical inventory. 2. b Entities that use the LIFO method may encounter a liquidation of base period inventories at an interim date that is expected to be replaced by the end of the annual period. In those cases the inventory at the interim reporting date shall not give effect to the LIFO liquidation, and cost of sales for the interim reporting period shall include the expected cost of replacement of the liquidated LIFO base. 3. c Inventory losses from the application of the guidance on subsequent measurement in Subtopic 330-10shall not be deferred beyond the interim period in which the decline occurs. Recoveries of such losses on the same inventory in later interim periods of the same fiscal year through market value recoveries (for inventory measured using LIFO or the retail inventory method) or [net realizable value](https://asc.understandingaccounting.org/glossary/n/#net-realizable-value "Estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.")recoveries (for all other inventory) shall be recognized as gains in the later interim period. Such gains shall not exceed previously recognized losses. Some declines in the market value (for inventory measured using LIFO or the retail inventory method) or net realizable value (for all other inventory) of inventory at interim dates, however, can reasonably be expected to be restored in the fiscal year. Such temporary declines need not be recognized at the interim date since no loss is expected to be incurred in the fiscal year. 4. d Entities that use standard cost accounting systems for determining inventory and product costs should generally follow the same procedures in reporting purchase price, wage rate, usage, or efficiency variances from standard cost at the end of an interim period as followed at the end of a fiscal year. Purchase price variances or volume or capacity cost variances that are planned and expected to be absorbed by the end of the annual period, should ordinarily be deferred at interim reporting dates. The effect of unplanned or unanticipated purchase price or volume variances, however, shall be reported at the end of an interim period following the same procedures used at the end of a fiscal year. ##### [270-10-45-7](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2927d186a0ef5db429b7f50da52fab0ebf25f8011db5ec953edca9363dcc1576 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Charges are made to income for all other costs and expenses in annual reporting periods based upon any of the following: 1. a Direct expenditures made in the period (salaries and wages) 2. b Accruals for estimated expenditures to be made at a later date (vacation pay) 3. c Amortization of expenditures that affect more than one annual period (such as insurance premiums, interest, and rents). ##### [270-10-45-8](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-8) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:60c4d5e38e3e24d00c51bd0f13330dd2e8fe0056db86490b1505a674e80d0f77 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective in all cases is to achieve a fair measure of results of operations for the annual period and to present fairly the financial position at the end of the annual period. The following standards shall apply in accounting for costs and expenses other than product costs in interim periods: 1. a Costs and expenses other than product costs shall be charged to income in interim periods as incurred, or be allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period shall be consistent with the bases followed by the entity in reporting results of operations at annual reporting dates. However, if a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item may be allocated to those interim periods (see paragraph [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9)). 2. b Some costs and expenses incurred in an interim period, however, cannot be readily identified with the activities or benefits of other interim periods and shall be charged to the interim period in which incurred. Disclosure in the notes to financial statements shall be made as to the nature and amount of such costs unless items of a comparable nature are included in both the current interim period and in the corresponding interim period of the preceding year. (See paragraph [270-10-50-1B](https://asc.understandingaccounting.org/asc/270/10/#270-10-50-1B).) 3. c Arbitrary assignment of the amount of such costs to an interim period shall not be made. 4. d Gains and losses that arise in any interim period similar to those that would not be deferred at year end shall not be deferred to later interim periods within the same fiscal year. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The objective in all cases is to achieve a fair measure of results of operations for the annual period and to present fairly the financial position at the end of the annual period. The following standards shall apply in accounting for costs and expenses other than product costs in interim periods: 1. a Costs and expenses other than product costs shall be charged to income in interim periods as incurred, or be allocated among interim periods based on an estimate of time expired, benefit received or activity associated with the periods. Procedures adopted for assigning specific cost and expense items to an interim period shall be consistent with the bases followed by the entity in reporting results of operations at annual reporting dates. However, if a specific cost or expense item charged to expense for annual reporting purposes benefits more than one interim period, the cost or expense item may be allocated to those interim periods (see paragraph [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9)). 2. b [Subparagraph superseded by Accounting Standards Update No. 2025-11.](https://asc.understandingaccounting.org/updates/asu-2025-11/) 3. c Arbitrary assignment of the amount of such costs to an interim period shall not be made. 4. d Gains and losses that arise in any interim period similar to those that would not be deferred at year end shall not be deferred to later interim periods within the same fiscal year. ##### [270-10-45-9](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8bfd99cea16d2cbe70f521d0cc958bf4ebb15f98b558670020756b83157db3e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A complete listing of examples of application of paragraphs [270-10-45-7 through 45-8](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-7) is not practical; however, the following examples of applications may be helpful: 1. a If a cost that is expensed for annual reporting purposes clearly benefits two or more interim periods, each interim period shall be charged for an appropriate portion of the annual cost by the use of accruals or deferrals. 2. b If quantity discounts are allowed to customers based upon annual sales volume, the amount of such discounts charged to each interim period shall be based on the sales to customers during the interim period in relation to estimated annual sales. 3. c Property taxes (and similar costs such as interest and rent) may be accrued or deferred at annual reporting date, to achieve a full year's charge of taxes to costs and expenses. Similar procedures shall be adopted at each interim reporting date to provide an appropriate cost in each period. 4. d Advertising costs may be deferred within a fiscal year if the benefits of an expenditure made clearly extend beyond the interim period in which the expenditure is made. Advertising costs may be accrued and assigned to interim periods in relation to sales prior to the time the service is received if the advertising program is clearly implicit in the sales arrangement. ##### [270-10-45-10](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:3c636b7bc8dcdcefbe973e1ef5f4f322c8fcedca22af2266d34530b151e8e2c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts of certain costs and expenses are frequently subjected to year-end adjustments even though they can be reasonably approximated at interim dates. To the extent possible such adjustments should be estimated and the estimated costs and expenses assigned to interim periods so that the interim periods bear a reasonable portion of the anticipated annual amount. Examples of such items include inventory shrinkage, allowance for uncollectible accounts, allowance for quantity discounts, and discretionary year-end bonuses. #### Seasonal Revenue, Costs, or Expenses ##### [270-10-45-11](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:63babad822cf27f3f06b6320bfcfdb578ffb66c86628d40338aad20404d686bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Revenues of certain entities are subject to material seasonal variations. To avoid the possibility that interim results with material seasonal variations may be taken as fairly indicative of the estimated results for a full fiscal year, such entities shall disclose the seasonal nature of their activities, and consider supplementing their interim reports with information for 12-month periods ended at the interim date for the current and preceding years. #### Unusual or Infrequent Items and Disposals of Components ##### [270-10-45-11A](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-11A) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:869d03f0be0942d297924d5ff620da1ecdc2f42bc8613a80eb7d8208ef240f4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Effects of disposals of a component of an entity and unusual or infrequently occurring transactions and events that are material with respect to the operating results of the interim period shall be reported separately. Gains or losses from disposal of a component of an entity and unusual or infrequently occurring items shall not be prorated over the balance of the fiscal year. #### Accounting Changes in Interim Periods ##### [270-10-45-12](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-12) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2a0722beb7ae649b2006649dac64eca121597f7f0bda705cc649a85845c3732f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Each report of interim financial information shall indicate any [change in accounting principles](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.") or practices from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual report. Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)
Editor's Note: The pending content for paragraph 270-10-45-12 linked to paragraph 105-10-65-7 will be removed upon transition of paragraph 270-10-65-1.
Each report of interim financial information shall indicate any [change in accounting principles,](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle.") change in practices, or [change in the reporting entity](https://asc.understandingaccounting.org/glossary/c/#change-in-the-reporting-entity "A change that results in financial statements that, in effect, are those of a different reporting entity. A change in the reporting entity is limited mainly to the following: Presenting consolidated or combined financial statements in place of financial statements of individual entities Changing specific subsidiaries that make up the group of entities for which consolidated financial statements are presented Changing the entities included in combined financial statements. Neither a business combination accounted for by the acquisition method nor the consolidation of a variable interest entity (VIE) pursuant to Topic 810 is a change in reporting entity.") from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual report. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Interim financial statements and notes in accordance with GAAP shall indicate any [change in accounting principles](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-principle "A change from one generally accepted accounting principle to another generally accepted accounting principle when there are two or more generally accepted accounting principles that apply or when the accounting principle formerly used is no longer generally accepted. A change in the method of applying an accounting principle also is considered a change in accounting principle."), change in practices, or [change in the reporting entity](https://asc.understandingaccounting.org/glossary/c/#change-in-the-reporting-entity "A change that results in financial statements that, in effect, are those of a different reporting entity. A change in the reporting entity is limited mainly to the following: Presenting consolidated or combined financial statements in place of financial statements of individual entities Changing specific subsidiaries that make up the group of entities for which consolidated financial statements are presented Changing the entities included in combined financial statements. Neither a business combination accounted for by the acquisition method nor the consolidation of a variable interest entity (VIE) pursuant to Topic 810 is a change in reporting entity.")from those applied in any of the following: 1. a The comparable interim period of the prior annual period 2. b The preceding interim periods in the current annual period 3. c The prior annual financial statements. ##### [270-10-45-13](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:7014ad340bf0bae4f3b606b42c1056ee542a6274a98c04586ffb6089d8a19309 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in an interim or annual accounting practice or policy made in an interim period shall be reported in the period in which the change is made, in accordance with the provisions of Topic 250. ##### [270-10-45-14](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-14) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2dc1e0cbe03b6a88d1c47188670bfcdaf70d7256fd8bee847e467e9fb2cfa29f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of a [change in accounting estimate](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations."), including a change in the estimated effective annual tax rate, shall be accounted for in the period in which the change in estimate is made. No [restatement](https://asc.understandingaccounting.org/glossary/r/#restatement "The process of revising previously issued financial statements to reflect the correction of an error in those financial statements.") of previously reported interim information shall be made for changes in estimates, but the effect on earnings of a change in estimate made in a current interim period shall be reported in the current and subsequent interim periods, if material in relation to any period presented and shall continue to be reported in the interim financial information of the subsequent year for as many periods as necessary to avoid misleading comparisons. Such disclosure shall conform with paragraph [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The effect of a [change in accounting estimate](https://asc.understandingaccounting.org/glossary/c/#change-in-accounting-estimate "A change that has the effect of adjusting the carrying amount of an existing asset or liability or altering the subsequent accounting for existing or future assets or liabilities. A change in accounting estimate is a necessary consequence of the assessment, in conjunction with the periodic presentation of financial statements, of the present status and expected future benefits and obligations associated with assets and liabilities. Changes in accounting estimates result from new information. Examples of items for which estimates are necessary are uncollectible receivables, inventory obsolescence, service lives and salvage values of depreciable assets, and warranty obligations."), including a change in the estimated effective annual tax rate, shall be accounted for in the period in which the change in estimate is made. No [restatement](https://asc.understandingaccounting.org/glossary/r/#restatement "The process of revising previously issued financial statements to reflect the correction of an error in those financial statements.") of previously issued interim financial statements and notes in accordance with GAAP shall be made for changes in estimates, but the effect on earnings of a change in estimate made in a current interim period shall be reported in the current and subsequent interim periods, if material in relation to any period presented and shall continue to be reported in the interim financial statements and notes in accordance with GAAP of the subsequent year for as many periods as necessary to avoid misleading comparisons. Such disclosure shall conform with paragraph [250-10-50-4](https://asc.understandingaccounting.org/asc/250/10/#250-10-50-4). ##### [270-10-45-15](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:8e509803bca4b28c5be08ba2f5a990d74fd824b086eb57d13a36d59bd67db1af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Whenever possible, entities should adopt any [accounting changes](https://asc.understandingaccounting.org/glossary/a/#accounting-change "A change in an accounting principle, an accounting estimate, or the reporting entity. The correction of an error in previously issued financial statements is not an accounting change.") during the first interim period of a fiscal year. Changes in accounting principles and practices adopted after the first interim period in a fiscal year tend to obscure operating results and complicate disclosure of interim financial information. ##### [270-10-45-16](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:addc79849ce45857822d5eea62bd98f150a1d9c0360aab1f33a0fcff2320c0fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-27](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-27), in determining materiality for the purpose of reporting the correction of an error, amounts shall be related to the estimated income for the full fiscal year and also to the effect on the trend of earnings. Changes that are material with respect to an interim period but not material with respect to the estimated income for the full fiscal year or to the trend of earnings shall be separately disclosed in the interim period. #### Adjustments Related to Prior Interim Periods of the Current Fiscal Year ##### [270-10-45-17](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:712842a18c1c30fd6fd4a78afda0961d4e589d2c5a6932b04d503dd5a829744d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-25](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-25), an adjustment related to prior interim periods of the current fiscal year is an adjustment or settlement of litigation or similar claims, of income taxes (except for the effects of retroactive tax legislation), of renegotiation proceedings, or of utility revenue under rate-making processes provided that the adjustment or settlement meets all of the following criteria: 1. a The effect of the adjustment or settlement is material in relation to income from continuing operations of the current fiscal year or in relation to the trend of income from continuing operations or is material by other appropriate criteria. 2. b All or part of the adjustment or settlement can be specifically identified with and is directly related to business activities of specific prior interim periods of the current fiscal year. 3. c The amount of the adjustment or settlement could not be reasonably estimated prior to the current interim period but becomes reasonably estimable in the current interim period. Criterion (b) above is not met solely because of incidental effects such as interest on a settlement. Criterion (c) would be met by the occurrence of an event with currently measurable effects such as a final decision on a rate order. Treatment as adjustments related to prior interim periods of the current fiscal year shall not be applied to the normal recurring corrections and adjustments that are the result of the use of estimates inherent in the accounting process. Changes in provisions for doubtful accounts shall not be considered to be adjustments related to prior interim periods of the current fiscal year even though the changes result from litigation or similar claims. ##### [270-10-45-18](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:5e0fea87727a235fc4ea2f41a7b7ac4e7859a06e29643ee19a2ac11e1e186e84 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [250-10-45-26](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-26), if an item of profit or loss occurs in other than the first interim period of the entity's fiscal year and all or a part of the item of profit or loss is an adjustment related to prior interim periods of the current fiscal year, as defined in the preceding paragraph, the item shall be reported as follows: 1. a The portion of the item that is directly related to business activities of the entity during the current interim period, if any, shall be included in the determination of net income for that period. 2. b Prior interim periods of the current fiscal year shall be restated to include the portion of the item that is directly related to business activities of the entity during each prior interim period in the determination of net income for that period. 3. c The portion of the item that is directly related to business activities of the entity during prior fiscal years, if any, shall be included in the determination of net income of the first interim period of the current fiscal year. #### Guidance Related to Presentation of Other Topics at Interim Dates ##### [270-10-45-19](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-19) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:b4aeee622dccbc4fd190380c3cd25e4311738adafe411819a2bf83ebd006f68f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) . 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). Transition date:(P) June 30, 2027; (N) June 30, 2027Transition guidance: [105-10-65-7](https://asc.understandingaccounting.org/asc/105/10/#105-10-65-7)
Editor's Note: The pending content for paragraph 270-10-45-19 linked to paragraph 105-10-65-7 will be removed upon transition of paragraph 270-10-65-1.
The following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) and [250-10-45-21](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-21). 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)The following may not represent all references to interim reporting: 1. a For accounting changes, see paragraphs [250-10-45-14 through 45-16](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-14) and [250-10-45-21](https://asc.understandingaccounting.org/asc/250/10/#250-10-45-21). 2. b For comprehensive income, see paragraph [220-10-45-18](https://asc.understandingaccounting.org/asc/220/10/#220-10-45-18). 3. c For incurred but not reported liability and interim reporting, see paragraphs [720-20-35-3 through 35-5](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-3) and [720-20-35-8](https://asc.understandingaccounting.org/asc/720/20/#720-20-35-8). 4. d For income tax provisions, see Subtopic 740-270. 5. e For inventory, see paragraphs [330-10-55-2](https://asc.understandingaccounting.org/asc/330/10/#330-10-55-2) and [610-30-25-3](https://asc.understandingaccounting.org/asc/610/30/#610-30-25-3). 6. f For pensions and other postretirement benefits, see paragraphs [715-20-55-18 through 55-19](https://asc.understandingaccounting.org/asc/715/20/#715-20-55-18) and [715-60-35-40](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-40). 7. g For evaluation of a going concern, see paragraphs [205-40-50-1 through 50-11](https://asc.understandingaccounting.org/asc/205/40/#205-40-50-1) . #### Form and Content of Interim Financial Statements and Notes ##### [270-10-45-20](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-20) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0af8146b71d5f03920c6719b361cead038c99d71e1cdf03c5de506aa582b1d8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)When preparing interim financial statements and notes in accordance with GAAP (including condensed statements), a [Securities and Exchange Commission registrant](https://asc.understandingaccounting.org/glossary/s/#securities-and-exchange-commission-registrant "An entity (or an entity that is controlled by an entity) that meets any of the following criteria: It has issued or will issue debt or equity securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") (SEC registrant) shall refer to the applicable form and content of interim financial statements for SEC registrants. For example, see Regulation S-X Rule 10-01 (17 CFR 210.10-01) and Regulation S-X Rule 8-03 (17 CFR 210.8-03) (paragraph [270-10-S45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-S45-2)). ##### [270-10-45-21](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-21) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:2523ff52ef8a7466066e69a8706071157dc69836aabaa79509a32191c289fa48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)An entity that is not an SEC registrant may issue interim financial statements and notes in accordance with GAAP. When those financial statements are issued, the entity may present either of the following: 1. a Financial statements presented using the same level of aggregation as the annual financial statements and notes subject to applicable annual disclosure requirements in GAAP 2. b Financial statements that are presented at a level more aggregated than the annual financial statements or that have limited notes subject to the disclosure requirements in this Topic or both ([condensed statements](https://asc.understandingaccounting.org/glossary/c/#condensed-statements "(P) December 16, 2027; (N) December 16, 2028 270-10-65-1 Financial statements that are presented at a level that is more aggregated than the annual financial statements or have limited notes subject to the disclosure requirements in Topic 270 or both. (U.S. Securities and Exchange Commission [SEC] registrants are required to consider the guidance in paragraph 270-10-S45-2. See Regulation S-X Rule 10-01 [17 CFR 210.10-01] and Regulation S-X Rule 8-03 [17 CFR 210.8-03].)")). ##### [270-10-45-22](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:0a846b2255f2ce1c79820290ab193f42455be712b035aeee9460f1cce8a27766 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If an entity that is not an SEC registrant chooses to present condensed statements in accordance with paragraph [270-10-45-21(b)](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-21), the entity shall follow the following form and content guidance: 1. a For the statement of financial position at the end of the reporting period, an entity shall include separate captions for each balance sheet component presented in the annual financial statements that is 10 percent or more of total assets. An entity also shall separately present cash and retained earnings regardless of the relative significance to total assets. An entity that presents a classified statement of financial position at the end of the annual reporting period shall present totals for current assets and current liabilities. 2. b For the statement of earnings for the reporting period, an entity shall include net sales or gross revenue and present each cost and expense category presented in the annual financial statements that exceeds 20 percent of sales or gross revenues (financial institutions shall substitute net interest income for sales). An entity also shall present the provision for income taxes and discontinued operations. 3. c For the statement of cash flows for the reporting period, an entity shall present totals for each category of cash flow activities (operating, investing, and financing) as well as cash at the beginning and end of each period and the increase or decrease in such balance. 4. d For investments by and distributions to owners for the reporting period, an entity shall present (in a note or a separate statement) an analysis of the changes in each caption presented in the statement of financial position. The analysis of changes shall be presented in the form of a reconciliation of the beginning balance to the ending balance for the reporting period. An entity also shall separately present investments by and distributions to owners. However, if an entity that is not an SEC registrant is required by the SEC to follow certain form and content requirements under SEC rules and regulations, the entity shall follow the requirements specified by the SEC. ##### [270-10-45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-23) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:cb2259b823abfacb1602b6fc121dc46d80c271dfd0cbd4c2a13ead37912ca24a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)An entity that is not an SEC registrant that chooses to apply the guidance in Regulation S-X Rule 10-01(a) (17 CFR 210.10-01(a)) or Regulation S-X Rule 8-03(a) (17 CFR 210.8-03(a)) is considered to be in compliance with the content requirements for condensed statements in paragraph [270-10-45-22](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22). ##### [270-10-45-24](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-24) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:311ca042b77c4b1ad433e9d848eb062b320b7197989f9021ee268ea425ba7286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)Condensed statements can be provided only if the previous annual financial statements have been issued (or the financial statements have been made available for issuance). ##### [270-10-45-25](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-25) Pending content: yes Source downloaded (UTC): 2026-09-09T23:19:55.549Z to 2026-09-09T23:19:55.549Z Record version: sha256:359983afbfbb4706d0f125a53866b5ac21540f6a279246422281d4b9f74cae5b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)If a not-for-profit entity presents condensed statements, the following requirements shall apply: 1. a Net assets with donor restrictions and net assets without donor restrictions shall be presented regardless of relative significance to total net assets in the statement of financial position. 2. b The required disclosure of expenses by nature and function may be condensed in accordance with the guidance in paragraphs [270-10-45-22 through 45-23](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-22) , whether presented on the face of the statement of activities, as a separate schedule in the notes to financial statements, or in a separate financial statement. 3. c The requirement to provide a separate statement of changes in investments by and distributions to owners or disclosures explaining that such changes are not applicable.