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#07 PAS 34 (Interim Reporting)
#07 PAS 34 (Interim Reporting)
INTERIM REPORTING
Key Definitions
Interim Period – Is a financial reporting period shorter than a full financial year.
Interim financial report – A financial report containing either a complete set of financial
statements or a set of condensed financial statements for an interim period.
a. Revenues from products sold or services rendered are generally recognized for interim
reports on the same basis as for the annual period.
b. Expenses associated directly with revenue are matched against revenue in those
interim periods in which the related revenue is recognized.
c. Expenses not associated with revenue are recognized in the interim periods as incurred
or allocated over the interim periods benefited.
d. Inventories are measured for interim financial reporting by the same principles as at
financial year-end (LCNRV). However full inventory taking may not be required at interim
dates although it must be done at financial year-end. It may be sufficient to make
estimates at interim dates based on sales margin.
e. Inventory losses from permanent market declines are recognized in the interim period in
which the decline occurs. Recoveries of such losses on the same inventory in later interim
period should be recognized as gains in later interim periods.
f. Temporary market declines on inventories and recoveries at a later interim period are now
recognized for interim purposes.
g. Interim period income tax expense should reflect the same general principles of income
tax accounting applicable to annual reporting.
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h. Gains or losses from, disposal of property, gains or losses from sale of discontinued
operations and other gains and losses should not be allocated over the interim periods.
Other Guidelines
Accounting Policies
Principles for recognizing assets, liabilities, income and expenses are same as in the most
recent annual financial statements, unless there is a change in an accounting policy that is
to be reflected in the next annual financial statements.
Tax recognised based on weighted average annual income tax rate expected for the full
year
Tax rate changes during the year are adjusted in the subsequent interim period during the
year.
USE OF ESTIMATES - Interim reports require a greater use of estimates than annual reports.
Revenue received during the year should not be anticipated or deferred where anticipation
would not be appropriate at year end
Recognized as it occurs.
Periods to be presented
Statement of financial position as at the end of the current interim period (e.g. 30 Sept.
2016) and as of the end of the immediate preceding financial year (e.g. 31 December 2015)
Statements of comprehensive income for the current interim period (e.g. July – Sept. 2016)
and cumulatively for the current financial year (Jan. – Sept. 2016) (which will be the same
for half year ends), with comparatives for the interim period of the preceding financial year
(Jan. – Sept. 2015)
Statements of changes in equity for the current financial year to date, with comparatives for
the year to date of the immediately preceding financial year
Statements of cash flows for the current financial year to date, with comparatives for the
year to date of the immediately preceding financial year.
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