PAS 34 states a presumption that anyone reading interim financial reports will
An interim financial report is a complete or condensed set of financial statements for a period shorter than a financial year. IAS 34 does not specify which entities must publish an interim financial report. That is generally a matter for laws and government regulations. IAS 34 applies if an entity using IFRS Standards in its annual financial statements publishes an interim financial report that asserts compliance with IFRS Standards. Show
IAS 34 prescribes the minimum content of such an interim financial report. It also specifies the accounting recognition and measurement principles applicable to an interim financial report. The minimum content is a set of condensed financial statements for the current period and comparative prior period information, ie statement of financial position, statement of comprehensive income, statement of cash flows, statement of changes in equity, and selected explanatory notes. In some cases, a statement of financial position at the beginning of the prior period is also required. Generally, information available in the entity’s most recent annual report is not repeated or updated in the interim report. The interim report deals with changes since the end of the last annual reporting period. The same accounting policies are applied in the interim report as in the most recent annual report, or special disclosures are required if an accounting policy is changed. Assets and liabilities are recognised and measured for interim reporting on the basis of information available on a year-to-date basis. While measurements in both annual financial statements and interim financial reports are often based on reasonable estimates, the preparation of interim financial reports will generally require a greater use of estimation methods than annual financial statements. Chapter 12 Interim Reporting 0 ratings0% found this document useful (0 votes) 12K views10 pagesDocument Informationclick to expand document information
Valix Chap.12 Answer Keys Copyright© © All Rights Reserved Share this documentShare or Embed DocumentSharing Options
Did you find this document useful?0%0% found this document useful, Mark this document as useful 0%0% found this document not useful, Mark this document as not useful Is this content inappropriate?SaveSave Chapter 12 Interim Reporting For Later 0 ratings0% found this document useful (0 votes) Chapter 12 Interim Reporting Uploaded byRay Sanzenin
Valix Chap.12 Answer Keys SaveSave Chapter 12 Interim Reporting For Later 0%0% found this document useful, Mark this document as useful 0%0% found this document not useful, Mark this document as not useful EmbedShare Jump to Page You are on page 1of 10Search inside document You're Reading a Free Preview Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime. Share this documentShare or Embed DocumentSharing Options
Home Books Audiobooks Documents Deloitte's publication Interim Financial Reporting: A Guide to IAS 34 (2009 edition) provides an overview of IAS 34, application guidance and examples, a model interim financial report, and an IAS 34 compliance checklist. Contents:
Click to Download the Deloitte Guide to IAS 34 (PDF 1,205k, March 2009, 76 pages). Objective of IAS 34The objective of IAS 34 is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in financial statements presented for an interim period. Key definitionsInterim period: a financial reporting period shorter than a full financial year (most typically a quarter or half-year). [IAS 34.4] Interim financial report: a financial report that contains either a complete or condensed set of financial statements for an interim period. [IAS 34.4] Matters left to local regulatorsIAS 34 specifies the content of an interim financial report that is described as conforming to International Financial Reporting Standards. However, IAS 34 does not mandate:
Such matters will be decided by national governments, securities regulators, stock exchanges, and accountancy bodies. [IAS 34.1] However, the Standard encourages publicly-traded entities to provide interim financial reports that conform to the recognition, measurement, and disclosure principles set out in IAS 34, at least as of the end of the first half of their financial year, such reports to be made available not later than 60 days after the end of the interim period. [IAS 34.1] Minimum content of an interim financial reportThe minimum components specified for an interim financial report are: [IAS 34.8]
If a complete set of financial statements is published in the interim report, those financial statements should be in full compliance with IFRSs. [IAS 34.9] If the financial statements are condensed, they should include, at a minimum, each of the headings and sub-totals included in the most recent annual financial statements and the explanatory notes required by IAS 34. Additional line-items or notes should be included if their omission would make the interim financial information misleading. [IAS 34.10] If the annual financial statements were consolidated (group) statements, the interim statements should be group statements as well. [IAS 34.14] The periods to be covered by the interim financial statements are as follows: [IAS 34.20]
If the company's business is highly seasonal, IAS 34 encourages disclosure of financial information for the latest 12 months, and comparative information for the prior 12-month period, in addition to the interim period financial statements. [IAS 34.21] Note disclosuresThe explanatory notes required are designed to provide an explanation of events and transactions that are significant to an understanding of the changes in financial position and performance of the entity since the last annual reporting date. IAS 34 states a presumption that anyone who reads an entity's interim report will also have access to its most recent annual report. Consequently, IAS 34 avoids repeating annual disclosures in interim condensed reports. [IAS 34.15] Examples of specific disclosure requirements of IAS 34 Examples of events and transactions for which disclosures are required if they are significant [IAS 34.15A-15B]
Examples of other disclosures required [IAS 34.16A]
Accounting policiesThe same accounting policies should be applied for interim reporting as are applied in the entity's 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. [IAS 34.28] 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. [IAS 34.43] MeasurementMeasurements for interim reporting purposes should be made on a year-to-date basis, so that the frequency of the entity's reporting does not affect the measurement of its annual results. [IAS 34.28] Several important measurement points:
An appendix to IAS 34 provides guidance for applying the basic recognition and measurement principles at interim dates to various types of asset, liability, income, and expense. MaterialityIn deciding how to recognise, measure, classify, or disclose an item for interim financial reporting purposes, materiality is to be assessed in relation to the interim period financial data, not forecast annual data. [IAS 34.23] Disclosure in annual financial statementsIf an estimate of an amount reported in an interim period is changed significantly during the financial interim period in the financial year but a separate financial report is not published for that period, the nature and amount of that change must be disclosed in the notes to the annual financial statements. [IAS 34.26] What view of interim financial reporting is essentially adopted by the PAS 34?ANSWER 10-
PAS 34 on interim financial reporting does not mention about the integral view and the independent view. Essentially, the standard adopts a mix of the integral and independent views.
What is the provisions of PAS 34?PAS 34 prescribes the minimum content of an interim financial report and the recognition and measurement principles in complete or condensed financial statements for an interim period. PAS 34 does not mandate which entities should produce interim financial reports.
Which of the following statements is correct in relation to IAS 34 interim financial reporting?I will go with the answer C, An entity may wait till final period reporting if the change happened after the last annual statements, but even though, interim statements for the same period should be re-stated. A is wrong, cash flow should be reported even in interim statements.
Which of the following entities are required under PAS 34 to prepare and present interim financial reports?PAS 34 shall be applied by a. b. c. d. entities which are required by the government or other entities to provide interim financial reports those who choose to provide interim financial reports a and b all reporting entities who are adopting the “full” PFRS 3.
|