IAS 34
INTERIM FINANCIAL REPORTING
CONTENT
• Interim Financial Report
• Contents of an I.F.R
• History
• Objective
• Scope
• Goal of I.F.R
• Measurement and Principles for recognition and measurement
• Materiality
• Accounting Policies
• Disclosure
Interim Financial Reporting
• Public Financial Report
• Short-term Statement
Interim Report
• Interim period: a financial reporting period shorter than a full
financial year (most typically a quarter or half-year).
• Interim financial report: a financial report that contains either a
complete or condensed set of financial statements for an interim
period.
Contents of an Interim Financial Statement
• Condensed balance sheet
• Condensed income statement
• Condensed statement of changes in equity
• Condensed cash flow statement
• Selected explanatory notes
History of IAS 34
Date
Development
Comments
August 1997
Exposure Draft E57 Interim Financial
Reporting published
June 1999
IAS 34 Interim Financial
Reporting issued
Operative for financial statements
covering periods beginning on or after 1
January 1999
6 May 2010
Amended by Improvements to IFRSs
2010 (significant transactions and
events)
Effective for annual periods beginning
on or after 1 January 2011
17 May 2012
Amended by Annual Improvements
2009-2011 Cycle (segment information)
Effective for annual periods beginning
on or after 1 January 2013
25 September 2014
Amended by Improvements to IFRSs
2014 (disclosure of information
'elsewhere in the interim financial
report')
Effective for annual periods beginning
on or after 1 January 2016
Objective
• Minimum contents of interim report
• Recognition and measurement principles
Scope
• Standard does not address how often nor how soon after the period entities should
produce interim reports
• Choice by the entity
• May choose not to prepare interim financial statements at all
• May choose to prepare them in accordance with IFRSs
• if they do and they describe the financial statements to be in compliance with
IFRSs, the standard applies
Scope Cont’d
• Interim reporting
• Reports provide more relevant and timely information
• Often mandated by securities regulators, governments, and stock exchanges
• IASB encourages entities whose shares are publicly traded to provide interim
information
• At least as of the end of the first half of the year and issue it within 60 days of
this date
Goal of interim reporting
• To provide information about new events and circumstances and other
changes
• Not just replicate the information given in the annual financial
statements
Measurement
• Revenues that are received seasonally, cyclically or occasionally within a
financial year should not be anticipated or deferred as of the interim
date.
• Costs that are incurred unevenly during a financial year should be
anticipated or deferred for interim reporting purposes if, and only if, it
is also appropriate to anticipate or defer that type of cost at the end of
the financial year.
• Income tax expense should be recognised based on the best estimate of
the weighted average annual effective income tax rate expected for the
full financial year.
Principles for recognition and measurement
• Same as in annual financial statements
• no smoothing of income and expenses
• recognition of assets, liabilities, income and expenses in accordance
with the Framework and applicable Standards
• measurement on a year-to-date basis
• frequency of reporting should not affect measurement of annual
results
Materiality
less
materiality
greater
use of
estimates
Accounting Policies
• The same accounting policies should be applied.
• A key provision of IAS 34 is that an entity should use the same
accounting policy throughout a single financial year. If a decision is
made to change a policy mid-year, the change is implemented
retrospectively, and previously reported interim data is restated.
Disclosure
• Situations may arise where estimates are changed in the last quarter or
final interim period
• Where final interim period statements are not separately presented
and where the change is significant
• Nature and amount of change in estimate should be disclosed in the annual
statements
QUESTIONS?
• THE END