IAS 34 Interim Financial Reporting

IAS 34 Summary Notes
IAS 34 Interim Financial Reporting
INTRODUCTION
The purpose of IAS 34 is to set out the minimum content of such a report and to
describe the recognition and measurement principles in interim financial
statements.
Scope and
Objective This standard does not mandate which entities should be required to publish
interim financial reports, how frequently, or how soon after the end of an interim
period. However, IASB encourages publicly traded entities to provide interim
financial reports.
Interim period is a financial reporting period shorter than a full financial year.
Definitions Interim financial report means a financial report containing either a complete set
of financial statements (as described in IAS 1) or a set of condensed financial
statements (as described in IAS 34) for an interim period.
FORM
An entity publishing complete set of financial statements must follow requirement of IAS 1.
An entity publishing condensed financial statements must follow requirements of IAS 34. Additional
line items or notes shall be included if their omission would make the condensed interim financial
statements misleading.
Basic and diluted EPS shall be presented on the face of an income statement, complete or
condensed, for an interim period.
IAS 1 defines a complete set of financial statements as including the following
components:
(a) a statement of financial position;
As described (b) a statement of comprehensive income;
by IAS 1 (c) a statement of changes in equity;
(d) a statement of cash flows; and
(e) notes, comprising a summary of significant accounting policies and other
explanatory notes.
An interim financial report shall include, at a minimum, the following components:
Minimum
(a) condensed statement of financial position;
components
(b) condensed statement of comprehensive income;
of an interim
(c) condensed statement of changes in equity;
financial
(d) condensed statement of cash flows; and
report
(e) selected explanatory notes
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CONTENT
The explanatory notes are designed to provide an explanation of significant events

and transactions arising since the last annual financial statements. IAS 34 assumes
that readers of an entity’s report shall also have access to its most recent annual
report. IAS 34 requires many disclosures including:
(a) accounting policy change;
Selected
(b) seasonality or cyclicality of operations;
explanatory
(c) unusual items and changes in estimates;
notes
(d) dividends paid and material events after the end of the interim period;
(e) changes in the structure of the entity including business combinations and
restructuring;
(f) segment revenue and result;
(g) changes in contingent liabilities or assets since the last annual SFP date;
(h) issue, repurchase and repayment of debt and equity.
Compliance If an entity’s interim financial report is in compliance with IAS 34, that fact shall be
with IFRSs disclosed. An interim financial report shall not be described as complying with
IFRSs unless it complies with all of the requirements of IFRSs.
In deciding how to recognise, measure, classify, or disclose an item for interim
financial reporting purposes, materiality shall be assessed in relation to the interim
Materiality
period financial data. In making assessments of materiality, it shall be recognised
that interim measurement may rely on estimates to a greater extent than
measurements of annual financial data.
If an estimate of an amount reported in an interim period is changed significantly
Disclosure
during the final interim period of the financial year but a separate financial report is
in annual
not published for that final interim period, the nature and amount of that change in
financial
estimate shall be disclosed in a note to the annual financial statements for that
statements
financial year.
POLICIES AND ESTIMATES
An entity shall apply the same accounting policies in its interim financial
statements as are applied in its annual financial statements, except for
accounting policy change made after the date of most recent annual
Same accounting financial statements.
policies as annual
However, the frequency of entity’s reporting (annual, half yearly or quarterly)
shall not affect the measurement of its annual results. To achieve that
objective, measurements for interim reporting purposes shall be made on a
year-to-date basis.
Revenue received These shall not be anticipated or deferred as of an interim date if anticipation
seasonally, of deferral would not be appropriate at the end of the entity’s financial year.
cyclically, or
occasionally
Costs that are incurred unevenly during an entity’s financial year shall be
Costs incurred
anticipated or deferred for interim reporting purposes, if, and only if, it is also
unevenly during
appropriate to anticipate or defer that type of cost at the end of the financial
the financial year
year.
Income tax Income tax expense should be recognised based on the best estimate of the
expense weighted average annual income tax rate expected for the full financial year.
It is to be recognised that the preparation of interim reports will often require
Use of estimates
the greater use of estimates.
Restatement of An entity should use the same accounting policy throughout a single
previously financial year. Where a new accounting policy is adopted in an inerim period,
reported interim that policy should be applied retrospectively and previously reported interim
periods data is restated in accordance with IAS 8.
PERIODS FOR WHICH ‘INTERIM FS’ ARE PRESENTED

This has been explained with the help of following examples set out in Appendix A of IAS 34. An
entity with financial year-end at 31 December.
Half yearly
Component Current year Comparative year
Statement of financial position:
30 June 2001 31 December 2000
At
Statement of comprehensive income:
30 June 2001 30 June 2000
6 months ending
Statement of cash flows:
30 June 2001 30 June 2000
6 months ending
Statement of changes in equity:
30 June 2001 30 June 2000
6 months ending
Quarterly
Component Current year Comparative year
Statement of financial position:
30 June 2001 31 December 2000
At
Statement of comprehensive income:
6 months ending 30 June 2001 30 June 2000
3 months ending 30 June 2001 30 June 2000
Statement of cash flows:
30 June 2001 30 June 2000
6 months ending
Statement of changes in equity:
30 June 2001 30 June 2000
6 months ending
Dated: 02 September 2016

IAS 34 Interim Financial Reporting

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IAS 34 Summary Notes

IAS 34 Interim Financial Reporting

The explanatory notes are designed to provide an explanation of significant events

POLICIES AND ESTIMATES

PERIODS FOR WHICH ‘INTERIM FS’ ARE PRESENTED

Dated: 02 September 2016

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