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Information to be presented
An entity is permitted to provide less information
at interim dates compared with its annual financial
statements. However, if an entity publishes a complete
set of financial statements in its interim financial
report, the form and content should conform to the
requirements for full-year financial statements
[IAS34.9].
The following minimum information should be included
in a condensed interim financial report [IAS34.8]
:
| a) |
condensed balance sheet;
the headings and subtotals of the previous full-year
balance sheet should be included [IAS34.10]. The balance
sheet is prepared as at the end of the current
interim period and comparative information as
at the end of the previous full financial year
[IAS34.20(a)].
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| b) |
condensed income statement;
basic and diluted earnings per share should
be disclosed [IAS34.11]. The headings and
subtotals of the previous full-year income
statement should be included [IAS34.10].
Information should be presented for the current
period and the current year to date. Comparatives
for the comparable interim periods (current
and year to date) should be presented [IAS34.20(b)].
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| c) |
condensed cash flow statement;
The headings and subtotals for the previous
full financial year should be included [IAS34.10]. Information should be
given for the cumulative current year to date,
together with information for the comparable
year to date period of the previous year [IAS34.20(d)].
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| d) |
condensed statement of changes in equity;
The headings and subtotals used for the previous
financial year should be presented [IAS34.10]. Information should
be given for the current year to date and the
information for the comparable year to date
period of the previous year [IAS34.20(c)].
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Selected notes should also be given to help a user
understand the entity's performance. These notes
should include [IAS34.16]:
| a) |
details of changes in debt and equity [IAS34.16(e)]; |
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| b) |
separate disclosure of dividends for each
class of share [IAS34.16(f)];
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| c) |
analysis of the entity's revenue
and results for each primary segment . This
is only required by those entities for which
segmental disclosure is mandatory [IAS34.16(g)]; |
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| d) |
details of all material events
subsequent to the interim period. |
Additional information and line items should be
included where their omission would cause the interim
financial information to be misleading [IAS34.10]
.
Basis of measurement
The recognition and measurement bases used for
the interim financial information should be consistent
with those that will be used for the next full financial
year [IAS34.28]. The requirements of a new IFRS
to be adopted in the current year-end financial
statements must also be adopted for the interim
financial information. This applies to early adoption
as well as mandatory adoption .
The interim financial period should be treated
as a discrete accounting period. Transactions relating
to the period should be measured in the same way
as they would at year-end [IAS34.29] . Consequently,
revenues should be recognised when earned and costs
should be recognised when incurred [IAS34.37-39].
Costs and revenues should only be deferred if they
meet the definition of an asset or a liability . However, the frequency of reporting should
not impact on the measurement of the year-to-date
result [IAS34.28] .
The exception is the assessment of tax. The tax
charge should be calculated by reference to the
effective tax rate expected for the full year [IAS34.30]
.
The assessment of materiality for interim financial
information should be based on the interim financial
data [IAS34.23] .
Other matters / disclosures
Interim reports that contain condensed information
in accordance with IAS 34 should include a statement
of compliance with IAS 34 [IAS34.19]. The condensed
information does not comply with the full requirements
of IFRS and should therefore not claim to do so.
Likewise, the financial information should not be
described as interim financial statements but interim
financial information .
It should be stated that the accounting policies
followed are the same as those used in the previous
full financial statements [IAS34.16(a)]. An explanation
of any changes to policies should also be given
where relevant .
Any seasonal or cyclical nature of the entity's
operations and results should be explained [IAS34.16(b)]
, as should any significant unusual
items affecting the current period [IAS34.16(c)].
The effect of acquisitions and disposals on the
composition of the consolidated group should be
explained [IAS34.16(i)] . Where
there have been material changes to estimates included
in the previously published financial information,
these should be explained [IAS34.16(d)].
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