Many corporations now provide their shareholders with information during the course of the financial year. Probably one of the most important of these news releases is the interim income statement. This statement may cover only a specific segment of the financial year (e.g., a quarter) or it may include the results of the year to date. However, several issues have to be resolved when income is being measured for periods of time which are shorter than a year-e.g., seasonal variations, inventory valuations and writedowns, the allocation of nonrecurring transactions and income taxes. The above mentioned problems are but a few of those which are encountered in the process of interim income measurement. While these and other issues relevant to interim income measurement have been discussed elsewhere,' no research has been conducted to inquire to what extent, if any, the use of alternative interim income measurement techniques will affect (1) the absolute size of reported results for an interim period, (2) the pattern of interim results for the entire financial year, and (3) interyear comparisons of interim data. This study is addressed to these issues. The approach used here is similar to that used by Davidson and Kohl-