International Financial Reporting Standards_guide.pdf

CHAPTER 36
Interim Financial Reporting
(IAS 34)
36.1 OBJECTIVE
In order to make economic decisions, users require the latest financial information of an entity
and cannot wait a full year for the annual report. Interim financial information enhances
the accuracy of forecasting earnings and share prices and improves users’ ability to understand
the financial conditions and liquidity of the entity by providing information on a more
regular basis. Interim reporting also helps users understand seasonal fluctuations, trends,
and liquidity of the entity.
The objective of IAS 34 is to prescribe the following for interim financial reports:
■ minimum content; and
■ the principles for recognition and measurement in complete or condensed financial
statements.
36.2 SCOPE OF THE STANDARD
This standard applies to all entities that publish interim financial reports covering a period
shorter than a full financial year (for example, a half year or a quarter). This standard applies
whether such reporting is required by law or regulations or if the entity voluntarily publishes
such reports. Publicly traded entities are encouraged to publish interim financial reports
that comply with this standard at least at the end of the first half of the financial year
and to make these reports available within 60 days of the interim period.
IAS 34 defines and prescribes the minimum content of an interim financial report, including
disclosures, and identifies the accounting recognition and measurement principles that
should be applied in an interim financial report.
36.3 KEY CONCEPTS
36.3.1 An interim period is a financial reporting period which is shorter than a full financial
year (12 months).
36.3.2 An interim financial report is a financial report that contains either a complete or
condensed set of financial statements for an interim period.
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