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IFRS The scope of IAS 34

IFRS The scope of IAS 34

IFRS The scope of IAS 34:  Interim Financial Reporting prescribes the minimum content for an interim financial report, and the principles for recognition and measurement in complete and condensed financial statements for an interim period. The Standard has been effective since 1 January 1999, and was most recently amended as a consequential amendment of IAS 1(2007) Presentation of Financial Statements, resulting in changes in terminology, and in the titles and layout of certain of the financial statements to be included in interim financial reports.

IFRS The scope of IAS 34

IFRS The scope of IAS 34

IFRS The scope of IAS 34

These amendments are effective for periods beginning on or after 1 January 2009. IFRS 8 Operating Segments, which supersedes IAS 14 Segment Reporting and is effective for periods beginning on or after 1 January 2009, has expanded the segment information to be disclosed in interim financial reports.

IFRS The scope of IAS 34

In this guide, it is assumed that the interim accounting period under consideration begins on or after 1 January 2009 – no reference is made to the requirements of IAS 34 applicable to earlier periods. 1.1 Scope of IAS 34 IAS 34 applies to interim financial reports that are described as complying with International Financial Reporting Standards. [IAS 34.3] Interim financial reports are financial reports containing either a complete set of financial statements (as described in IAS 1) or a set of condensed financial statements (as described later in this guide) for an interim period. An interim period is a financial reporting period shorter than a full financial year

IFRS The scope of IAS 34:  No requirement to prepare interim financial reports IAS 34 does not contain any rules as to which entities should publish interim financial reports, how frequently, or how soon after the end of an interim period. The Standard notes that governments, securities regulators, stock exchanges, and accountancy bodies often require entities with publicly-traded debt or equity to publish interim financial reports, and that those regulations will generally specify the frequency and timing of such reports.

IFRS The scope of IAS 34

IAS 34 encourages publicly-traded entities:

  • To provide interim financial reports at least as of the end of the first half of their financial year.
  • To make their interim financial reports available no later than 60 days after the end of the interim period. 1.3 No requirement for interim financial reports to comply with IAS 34 Each financial report, annual or interim, is evaluated on a stand-alone basis for compliance with IFRSs.

It is important to note that entities that prepare annual financial statements in accordance with IFRSs are not precluded from preparing interim financial reports that do not comply with IFRSs, provided that the interim report does not state that it is IFRS-compliant.

The fact that an entity has not published interim financial reports during a financial year, or that it has published interim financial reports that do not comply with IAS 34, does not prevent the entity’s annual financial statements from conforming to IFRSs, if they are otherwise IFRS-compliant.

IFRS The scope of IAS 34

Includes IFRSs with an effective date after 1 January 2014 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to

International Financial Reporting Standards. The objective of this Standard is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in complete or condensed financial statements for an interim period.

Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity. This Standard applies if an entity is required or elects to publish an interim financial report in accordance with International Financial Reporting Standards.

Interim financial report means a financial report containing either a complete set of financial statements (as described in IAS 1 Presentation of Financial Statements (as revised in 2007)) or a set of condensed financial statements (as described in this Standard) for an interim period. Interim period is a financial reporting period shorter than a full financial year. In the interest of timeliness and cost considerations and to avoid repetition of information previously reported, an entity may be required to or may elect to provide less information at interim dates as compared with its annual financial statements. This Standard defines the minimum content of an interim financial report as including condensed financial statements and selected explanatory notes.

The interim financial report is intended to provide an update on the latest complete set of annual financial statements. Accordingly, it focuses on new activities, events, and circumstances and does not duplicate information previously reported. Nothing in this Standard is intended to prohibit or discourage an entity from publishing a complete set of financial statements (as described in IAS 1) in its interim financial report, rather than condensed financial statements and selected explanatory notes.

If an entity publishes a complete set of financial statements in its interim financial report, the form and content of those statements shall conform to the requirements of IAS 1 for a complete set of financial statements. An interim financial report shall include, at a minimum, the following components:

  1. Condensed statement of financial positionm
  2. Condensed statement of comprehensive income, presented as either
    1. A condensed single statement.
    2. A condensed separate income statement and a condensed statement of comprehensive income.
  3. Condensed statement of changes in equity.
  4. Condensed statement of cash flows.
  5. Selected explanatory notes.

If an entity publishes a set of condensed financial statements in its interim financial report, those condensed statements shall include, at a minimum, each of the headings and subtotals that were included in its most recent annual financial statements and the selected explanatory notes as required by this Standard. Additional line items or notes shall be included if their omission would make the condensed interim financial statements misleading.

IFRS The scope of IAS 34: 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 period financial data. In making assessments of materiality, it shall be recognised that interim measurements may rely on estimates to a greater extent than measurements of annual financial data. 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 changes made after the date of the most recent annual financial statements that are to be reflected in the next annual financial statements.

IFRS The scope of IAS 34- To achieve that objective, measurements for interim reporting purposes shall be made on a year-to-date basis. The measurement procedures to be followed in an interim financial report shall be designed to ensure that the resulting information is reliable and that all material financial information that is relevant to an understanding of the financial position or performance of the entity is appropriately disclosed. While measurements in both annual and interim financial reports are often based on reasonable estimates, the preparation of interim financial reports generally will require a greater use of estimation methods than annual financial reports.

IFRS The scope of IAS 34

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