PAS 34 INTERIM FINANCIAL REPORTING

I. NATURE
PAS 34 prescribes the minimum content of an interim financial report and the
recognition and measurement principles in complete or condensed financial statements
for an interim period.
PAS 34 does not mandate which entities should produce interim financial reports.
PAS 34 is applied when an entity chooses, or is required by the government or other
institution, to publish interim financial report that complies with PFRSs.
PAS 34 encourages publicly listed entities to provide at least a semi-annual financial
report for the first half of the year to be issued not later than 60 days after the end of the
interim period.

II. RECOGNITION
Materiality judgment on recognition, classification and disclosure of items in the interim
financial report are assessed in relation to the interim period financial data, and not
forecasted annual data.
PAS 34 recognizes that interim measurements may rely on estimates to a greater
extent than measurements of annual financial data.
Same accounting policies as annual
Same accounting policies are used in interim reports as those used in annual reports,
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.
Two views on interim reporting
Integral view
Annual operating expenses are estimated and then allocated to the benefitted interim
periods based on forecasted annual activity levels.
Discrete view
No special interim accruals or deferrals are made. Annual operating expenses are
recognized in the interim period which they are incurred regardless of whether
subsequent interim periods are benefitted.

III. MEASUREMENT
Measurement in the interim period are made on a year-to-date basis, so that the
frequency of reporting (annual, semi-annual, or quarterly) does not affect the
measurement of annual results.
 IV. TRANSACTION
Consequently, users of interim financial report are assumed to also have access to the
entity’s latest annual financial report.
Example of transactions:
a. Write-down of inventories and reversal thereof
b. Impairment losses and reversal thereof
c. Reversal of provision for restructuring costs
d. Acquisitions and disposals of PPE, including purchase commitments
e. Litigation settlements
f. Corrections of prior period errors
g. Business or economic circumstances affecting the fair value of financial assets
and financial liabilities.
h. Unremedied loan default or breach of loan agreement
i. Related party transactions

V. PRESENTATION
The entity presents basic and diluted earnings per share if the entity is within the scope
of PAS 33.
The entity discloses its compliance with PFRSs if it has complied with PAS 34 and all
the requirements of other PFRSs.

Periods for which the interim financial statements are presented

 Semi-annual interim financial reporting
For an entity uses the calendar year as its accounting period, the following interim
financial statements will appear in its semi-annual interim financial report.
 Quarterly interim financial reporting
For an entity that uses the calendar year, the following statements will appear in its third
quarter interim financial report

VI. DISCLOSURE
Events and transactions for which disclosures would be required if they are significant:
j. Write-down of inventories and reversal thereof
k. Impairment losses and reversal thereof
l. Reversal of provision for restructuring costs
m. Acquisitions and disposals of PPE, including purchase commitments
n. Litigation settlements
o. Corrections of prior period errors
p. Business or economic circumstances affecting the fair value of financial assets
and financial liabilities.
q. Unremedied loan default or breach of loan agreement
r. Related party transactions
Other disclosures
a. A statement that the same accounting policies were used in the interim financial
statements as those used in the latest annual financial statements. If there have
been changes, those changes are disclosed.
b. Explanation of seasonality or cyclicality of interim operations
c. Unusual items affecting the financial statement elements
d. Changes in accounting estimates
e. Issuance and settlements of debt and equity securities
f. Dividends paid
g. Segment information (if the entity is covered by PFRS 8)
h. Events after the reporting period
i. Changes in the composition of the entity, e.g., business combinations, obtaining
or losing control of subsidiaries, restructurings, and discontinued operations.
j. Disclosures on the fair value of financial instruments
k. Disclosures required by PFRS 12 when the entity becomes or ceases to be an
investment entity.
l. Disaggregation of revenue from contracts with customers as required by PFRS
15.