Final answer:
A seller is required to include any interest revenue or interest expense in its income statement or disclosure notes as these represent significant components related to long-term contracts.
Step-by-step explanation:
A seller is required to include any interest revenue or interest expense in its income statement or disclosure notes as these represent significant components related to long-term contracts.
For example, if a seller enters into a long-term contract where they receive interest revenue from the buyer, they need to report that as part of their income. Similarly, if a seller incurs interest expense related to providing goods or services under a long-term contract, they need to disclose that as well.
These disclosures are important for financial statement users to understand the impact of interest revenue or expense on the seller's financial performance and profitability.