 It is recognized that the preparation of interim reports will often require the

greater use of estimates.

 
Sundry Points
The materiality of items is to be assessed in relation to the interim period
financial data with the main aim being to include all information relevant to
the entity’s financial position and performance during that period. The same
accounting policies should be applied for interim reporting as are applied in the entity’s
annual financial statements.
An entity should use the same accounting policy throughout a single
financial year. Where a new accounting policy is adopted in an interim period, that
policy should be applied and previously reported interim data is restated in accordance
with IAS 8.

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 period, the nature
and amount of that change must be
disclosed in the notes to the annual
financial statements.
 
Interim Financial Reporting Case Example
Lie Company, an entity publicly quoted on a stock exchange, owns 15% of the equity
capital of Dharma Company. This equity investment is classified as “available
for sale” under IAS 39. The year-end of Lie Company is December 31, 20X8,
and an interim report has been prepared at June 30, 20X8, using IAS 34.
At January 1, 20X8, the fair value of the investment in Dharma Company was $2
million. The investment in Dharma was deemed to be impaired at June 30, 20X8,
and an impairment loss of $500,000 was determined at that date. However, at
December 31, 20X8, the fair value of the investment in Dharma Company had risen
to $2.3 million.

The question is: how the preceding

transaction should be shown in the financial