Overview

IAS 34 Interim Financial Reporting applies as soon as an entity prepares an interim financial report, without mandating as soon as an entity should prepare such a report. Permitting much less information to be reported than in annual financial statements (on the basis of offering an update to those financial statements), the conventional outlines the recognition, measurement and disclosure needs for interim reports.

You are watching: Companies should disclose all of the following in interim reports except

IAS 34 was issued in June 1998 and is operative for durations beginning on or after 1 January 1999.


History of IAS 34

DateDevelopmentComments
August 1997Exposure Draft E57 Interim Financial Reporting published
June 1999IAS 34 Interim Financial Reporting issuedOperative for financial statements extending durations beginning on or after 1 January 1999
6 May 2010Amended by Improvements to IFRSs 2010 (significant transactions and events)Effective for annual durations beginning on or after 1 January 2011
17 May 2012Amended by Annual Improvements 2009-2011 Cycle (segment information)Effective for yearly periods beginning on or after 1 January 2013
25 September 2014Amended by Improvements to IFRSs 2014 (disclocertain of information "elsewhere in the interim financial report")Effective for annual durations start on or after 1 January 2016

Related Interpretations

Amendments under consideration

None

Rundown of IAS 34

*

Deloitte"s publication Interim Financial Reporting: A Guide to IAS 34 (2009 edition) provides an introduction of IAS 34, application guidance and examples, a model interim financial report, and an IAS 34 compliance checklist. Contents:

1. Overview and also scope2. Content of an interim financial report3. Condensed or finish interim financial statements4. Selected explanatory notes5. Accounting policies for interim reporting6. General ethics for recognition and measurement7. Applying the acknowledgment and measurement principles8. Impairment of assets9. Measuring interim revenue taxes expense10. Wages per share11. First-time adoption of IFRSsModel interim financial reportIAS 34 compliance checklist

Click to Download the Deloitte Guide to IAS 34 (PDF 1,205k, March 2009, 76 pages).

Objective of IAS 34

The objective of IAS 34 is to prescribe the minimum content of an interim financial report and also to prescribe the ethics for recognition and measurement in financial statements presented for an interim period.

Key definitions

Interim period: a financial reporting duration shorter than a full financial year (the majority of typically a quarter or half-year).

Interim financial report: a financial report that has either a complete or condensed set of financial statements for an interim period.

Matters left to regional regulators

IAS 34 specifies the content of an interim financial report that is described as condeveloping to International Financial Reporting Standards. However before, IAS 34 does not mandate:

which entities should publish interim financial reports,how frequently, orhow shortly after the finish of an interim period.

Such matters will be determined by nationwide federal governments, securities regulators, stock extransforms, and also accounting bodies.

However before, the Standard encourages publicly-traded entities to provide interim financial reports that condevelop to the acknowledgment, measurement, and disclosure values collection out in IAS 34, at least as of the end of the initially half of their financial year, such reports to be made easily accessible not later on than 60 days after the end of the interim duration.

Minimum content of an interim financial report

The minimum components mentioned for an interim financial report are:

a condensed balance sheet (statement of financial position)either (a) a condensed statement of thorough income or (b) a condensed statement of detailed income and a condensed revenue statementa condensed statement of transforms in equitya condensed statement of cash flowsselected explanatory notes

If a complete set of financial statements is published in the interim report, those financial statements have to be in complete compliance via IFRSs.

If the financial statements are condensed, they must include, at a minimum, each of the headings and sub-totals had in the the majority of recent yearly financial statements and also the explanatory notes required by IAS 34. Additional line-items or notes need to be included if their omission would certainly make the interim financial indevelopment misleading.

If the yearly financial statements were consolidated (group) statements, the interim statements have to be team statements as well.

The periods to be covered by the interim financial statements are as follows:

balance sheet (statement of financial position) as of the finish of the current interim duration and also a comparative balance sheet as of the finish of the immediately coming before financial yearstatement of thorough earnings (and also income statement, if presented) for the existing interim period and cumulatively for the current financial year to day, through comparative statements for the comparable interim durations (present and also year-to-date) of the automatically coming before financial yearstatement of alters in equity cumulatively for the current financial year to date, via a comparative statement for the similar year-to-date duration of the immediately coming before financial yearstatement of cash flows cumulatively for the present financial year to day, with a comparative statement for the comparable year-to-day duration of the automatically coming before financial year

If the company"s company is highly seasonal, IAS 34 motivates disclosure of financial information for the latest 12 months, and comparative information for the prior 12-month period, in enhancement to the interim duration financial statements.

Note disclosures

The explanatory notes forced are designed to provide an explacountry of events and transactions that are considerable to an expertise of the changes in financial place and performance of the entity given that the last annual reporting date. IAS 34 claims a presumption that anyone who reads an entity"s interim report will additionally have accessibility to its a lot of recent annual report. Consequently, IAS 34 stays clear of repeating yearly disclosures in interim condensed reports.

 

Examples of particular disclocertain requirements of IAS 34

Instances of occasions and also transactions for which disclosures are forced if they are significant

write-down of inventoriesrecognition or reversal of an handicap lossreversal of provision for the costs of restructuringacquisitions and disposals of property, plant and also equipmentcommitments for the purchase of residential property, plant and equipmentlitigation settlementscorrections of prior duration errorschanges in business or financial scenarios affecting the fair worth of financial assets and liabilitiesunremedied loan defaults and breaches of loan agreementstransfers between levels of the "fair value hierarchy" or transforms in the classification of financial assetschanges in contingent liabilities and contingent assets.

See more: Liberty Hotel Boston New Years Eve, Illuminate Nye At The Liberty Hotel

Instances of other disclosures compelled

alters in bookkeeping policiesexplacountry of any seasonality or cyclicality of interim operationsunusual items affecting assets, liabilities, equity, net revenue or cash flowstransforms in estimatesissues, repurchases and repayment of debt and equity securitiesdividends paidoccasions after the finish of the reporting periodchanges in the composition of the entity, such as business combinations, obtaining or shedding manage of subsidiaries, restructurings and also disongoing operationsdisclosures around the fair value of financial instruments

 

Accounting policies

The same audit plans need to be used for interim reporting as are used in the entity"s yearly financial statements, other than for audit plan transforms made after the date of the many current yearly financial statements that are to be reflected in the following yearly financial statements.

A crucial provision of IAS 34 is that an entity need to use the exact same audit plan throughout a single financial year. If a decision is made to readjust a plan mid-year, the readjust is imposed retrospectively, and previously reported interim data is redeclared.

Measurement

Measurements for interim reporting purposes must be made on a year-to-date basis, so that the frequency of the entity"s reporting does not affect the measurement of its yearly outcomes.

Several vital measurement points:

Revenues that are received seasonally, cyclically or occasionally within a financial year need to not be anticipated or deferred as of the interim day, if anticipation or deferral would certainly not be correct at the finish of the financial year. Costs that are incurred unevenly during a financial year need to be anticipated or deferred for interim reporting objectives if, and just if, it is also proper to anticipate or defer that kind of expense at the finish of the financial year. Income tax price have to be recognised based on the best estimate of the weighted average yearly efficient revenue taxes rate expected for the complete financial year.

An appendix to IAS 34 offers guidance for applying the basic acknowledgment and measurement principles at interim dates to assorted forms of ascollection, licapacity, revenue, and cost.

Materiality

In deciding exactly how to recognise, meacertain, classify, or disclose an object for interim financial reporting purposes, materiality is to be assessed in relation to the interim duration financial information, not foreactors annual data.

Disclosure in yearly financial statements

If an estimate of an amount reported in an interim duration is changed substantially in the time of the financial interim duration in the financial year but a separate financial report is not publiburned for that period, the nature and amount of that change should be disclosed in the notes to the yearly financial statements.