IFRS Standard: IAS 34 Interim Financial Reporting

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.

IAS 34 Objective Scope Definitions

Objective

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

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IAS 34 Content of an interim financial report

5 IAS 1 defines a complete set of financial statements as including the following components:

  1. a statement of financial position as at the end of the period;
  2. a statement of profit or loss and other comprehensive income for the period;
  3. a statement of changes in equity for the period;
  4. a statement of cash flows for the period;
  5. notes, comprising
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IAS 34 Disclosure in annual financial statements

26 If an estimate of an amount reported in an interim period is changed significantly during the final interim period of the financial year but a separate financial report is not published for that final interim period, the nature and amount of that change in estimate shall be disclosed in a note to the annual financial statements for that financial

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IAS 34 Recognition and measurement

Same accounting policies as annual

28 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. However, the frequency of an entity’s

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IAS 34 Restatement interim reporting

Restatement of previously reported interim periods

43 A change in accounting policy, other than one for which the transition is specified by a new IFRS, shall be reflected by:

  1. restating the financial statements of prior interim periods of the current financial year and the comparable interim periods of any prior financial years that will be restated in the annual
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IAS 34 Presentation of required periods

Illustrative examples

These illustrative examples accompany, but are not part of, IAS 34.

A Illustration of periods required to be presented

The following examples illustrate application of the principle in paragraph 20.

Entity publishes interim financial reports half-yearly

A1 The entity’s financial year ends 31 December (calendar year). The entity will present the following financial statements (condensed or complete) in

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IAS 34 Applying recognition and measurement

B Examples of applying the recognition and measurement principles

The following are examples of applying the general recognition and measurement principles set out in paragraphs 28–39.

Employer payroll taxes and insurance contributions

B1 If employer payroll taxes or contributions to government-sponsored insurance funds are assessed on an annual basis, the employer’s related expense is recognised in interim periods using an

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IAS 34 Use of estimates

C Examples of the use of estimates

The following examples to illustrate application of the principle in paragraph 41.

C1 Inventories: Full stock-taking and valuation procedures may not be required for inventories at interim dates, although it may be done at financial year-end. It may be sufficient to make estimates at interim dates based on sales margins.

C2

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