IAS 34, INTERIM FINANCIAL REPORTING

 SFP at the end of the current interim period

 Interim Financial Statements – are financial
statements covering a period of less than one  Comparative SFP at the end of the preceding
year. Thus, they may be reported monthly, year
quarterly, or semi-annually.
 Income Statement
Annual Interim
TIME PERIOD 1 year or longer Monthly,  IS for the current interim period
quarterly, or
semi-annually  IS cumulatively for the current financial
PURPOSE Reporting to Give timelier year to date
creditors and source of
investors information  Comparative IS cumulatively for the
OTHER Audited and Less reliable; comparable financial year to date of the
DIFFERENCE detailed Requires greater
preceding year
estimation of
used information
ACCOUNTING Same Same  Comparative IS for the comparable interim
PRINCIPLES period of the preceding year.
APPLIED
 Statement of Comprehensive Income
 Components of Interim Financial Reporting
 Statement of Comprehensive Income for the
a. Condensed statement of financial position current interim period
b. Condensed statement of comprehensive
income  Statement of Comprehensive Income
c. Condensed statement of changes in equity cumulatively for the current financial year to
d. Condensed statement of cash flows date
e. Selected explanatory notes
 Comparative Statement of Comprehensive
 An entity can either issue a set of condensed FS Income cumulatively for the comparable
or complete FS. The difference is that in financial year to date of the preceding year
condenses FS some additional details are not
included in the report unless required to.  Comparative Statement of Comprehensive
Income for the comparable interim period of
 Selected explanatory notes are provided to avoid the preceding year.
repetition of notes from the latest annual report
with the interim report.  Statement of Changes in Equity

 Examples of Disclosures:  Statement of Changes in Equity

cumulatively for the current financial year to
o The reversal of any provision for date
restructuring
o Acquisition and disposals of items of  Comparative statement of Changes in Equity
for the comparable financial year to date of
property, plant and equipment
the preceding.
o Litigation settlements
o Changes in the classification of financial
 Statement of Cash Flows
statements
o Related part transactions and etc.
 Statement of Cash Flows cumulatively for
the current financial year to date
PRESENTATION OF COMPARATIVE INTERIM  Comparative statement of Cash Flows for
STATEMENTS the comparable financial year to date of the
preceding.
 Statement of Financial Position

RECOGNITION AND MEASUREMENTS
 Same Accounting Principles as Annual
Reports
 Same principles will be applied in interim
reporting except for changes made after the
issuance of the latest annual reporting. To
avoid the effects of the frequent reports in
interim reporting , measurements shall be
made on a year-to-date basis.
 This is also applicable in tax computation.
But if the financial year is different from the
tax year, effective tax rates will be applied
for the tax year it was incurred.
 If there will be change in accounting policy,
it must be applied for the whole year thus
report from previous interim period will be
restated.
 Revenues are recognized on the same basis as
in the annual report
 Depreciation and amortization will only be
applied to assets owned during the interim
period.
 Recognition of Bonuses and Benefits
 Bonuses are not just given annually. They
may be due to special recognition of deed or
skills anytime of the year.
 Bonus is expected if and only if:
The bonus is a legal obligation or past
practice would make the bonus a
constructive obligation for which the entity
has no realistic alternative but to make the
payment
A reliable estimate of the obligation can be
made.
 Unlike bonuses, benefits such as vacation
and holiday leave shall be anticipated for
interim purposes since it’s in the law to give
such.
 Gains and Losses

 Since revenues are not earned regularly in a  Gain and loses will be reported as realized
timely manner, like for seasonal or and incurred respectively thus it will not be
occasional instances, it shall not be predicted allocated over interim periods.
or delayed as of an interim date. Revenues
like dividend , royalties or government
grants are reported when realized.

 Cost and expenses are recognized as incurred

 For expenses directly related with revenue, it

corresponds in the period the revenue is
realized.

 For expenses not directly related, it is

recognized as incurred in the period.

 Uneven cost shall be expected or delayed if

necessary for that type at the end of the
period.

 Examples are Provision for Warranty or

Advertising Expenses

 Irregular Cost shall not be recognized in

interim report since it is not incurred yet.
Even it was planned, management may
decide not to incur this cost.