using many of the same tools as yearly statements.

This QuickVid will demonstrate: 1. Working Papers set-up for quarterly reporting

2. Financials set-up for quarterly reporting 3. Quarterly statement formats

4. and, quarterly note formats

When producing quarterly statements, it is necessary to have a separate client file created

to represent each quarter and import the appropriate quarterly information into the file.

Once you have created your first quarterly statement you are able to base the subsequent

quarterly periods off the previously created file. New tables based on Do-It-Yourself tables

will need to have their period sequence adjusted to reflect the new quarter.

To report quarterly data in the financial statements, the CaseWare period date sequence

for quarterly must be selected. While in Working Papers select Engagement | Properties. Select

the Reporting Dates tab. Ensure quarterly is selected. If your financial

information is based on monthly figures you are able compute whether the quarterly information

is based on a monthly date sequence or is independent.

It is necessary to select in Working Papers the quarterly period the client file will represent. This QuickVid will use the second

quarter. While in Working Papers select "Second Quarter" as the reporting sequence for the

file.

When selecting to produce quarterly statements, both Working Papers and Financials must be set to show

quarterly. Opening the Financial statements document, if Working Papers and Financials are not both

set to quarterly, a warning appears in the Financial statements. In this example Financials

needs to be set to quarterly.

From the template menu select Options | Financial statement options.

In the left select General | Financial settings and select 'Reporting period and dates'. A

warning appears, once the data reporting period is set to Quarterly the warning is removed.

When using quarterly information it is necessary to establish the 'comparative periods' you

want to show in each statement area. For example in the balance sheet the comparative options

are 'preceding period', 'equivalent period in prior year' and 'prior year end'. Select

the option most applicable for the client file and your jurisdiction. In this example

we will select equivalent period in prior year. Complete this option for all the applicable

statement areas. Select the back button to return to the financial

statements. Notice, in the balance sheet, comparative period

is the equivalent period in prior year.

Navigating to the Statement of Income, notice the table is converted to a four column comparative

table with the correct headings. Due to the nature of the Statement of Income, Statement

of retained earnings, if applicable the additional statement areas and the statement of Cash

Flows there exists a separate table format for quarterly presentation. The firm is also

able to modify these quarterly formats in the knowledge library and create additional

formats if necessary. Please see the QuickVid on Setting up the

Statement of cash flows worksheet for a demonstration on populating the statement of cash flows.

Navigating to the Notes, Financials does not provide out-of-the-box quarterly note formats

as many users do not prepare quarterly statements. The standard notes provided with Financials

do not support four column reporting periods for the note comparative options. Though the notes

do convert to a quarterly format, for example the PPE note displays as a default the equivalent

period in prior year and the Shareholders' equity note and any standard two column note

will display the prior period. You are unable to modify the comparative periods for CaseWare

notes where you may need alternative comparatives.

If your require additional comparative information, CaseWare recommends you use the Do-It-Yourself generic

table notes. Your firm also has the option to create additional firm quarterly notes

using DIY and add these to the notes firm knowledge library.

In this QuickVid two quarterly notes have been created in the Firm knowledge library

using DIY tables. One note is a two column balance sheet note, the other is a four column

income statement note. Each of these notes has different comparative information to correlate

to the statement they are supporting.

Following the comparative period selection in the Balance Sheet, notice the cash note

has been set up to show the equivalent period in the prior year.

Navigating to the Cost of goods sold note notice its comparative periods are set up as per the

appearance of the quarterly statement of income. The generic DIY table is also located in the

note section; please review the QuickVid on Do-It-Yourself tables for a demonstration

on building DIY tables.

Opening the cost of goods sold note for editing, right click to edit the 3 months ended prior

period column. Select modify table, select Edit column. In the DIY dialog, notice choices made

here. The reporting period is the prior year, the sequence is quarterly and the second period

number representing the second quarter is selected. As this is a three month ended column

the balance is showing the selected period only. This is a simple example of how one would set up a quarterly column using DIY.

Using all the existing tools and features in CaseWare Financials, it is possible to set up quarterly

financial statements effectively to produce accurate quarterly statements, however, some additional set up and training is required.

Once again please note, CaseWare recommends that you create a new client file for each

quarter. This will allow you to save the work completed in each quarter and continue to

roll forward each year thus saving you considerable time in the preparation of your quarterly

financial statements.

That concludes the QuickVid on quarterly statements. Thank you for watching CaseWare QuickVids.