Interim Financial Reporting

Interim Financial Reporting Defined

• Interim financial reporting covers a period shorter than a full financial year, such as a quarter, month, or other intervals.

Entities Required to Publish Interim Financial Reports

• The IAS board does not mandate which enterprises should publish interim financial reports.
• IAS 34 applies when regulatory authorities (like SEC and PSE) require or enterprises elect to issue interim financial reports.

Minimum Components and Contents of an Interim Financial Report

• A condensed statement of financial position
• A condensed statement of comprehensive income (either a single statement or separate statements of profit or loss and comprehensive income)
• A condensed statement of changes in equity
• A condensed statement of cash flows
• Selected explanatory notes to Financial Statements
• Basic and diluted earnings per share should be presented on the face of the statement of comprehensive income.

Periods Covered by Interim Financial Statements

• Statement of financial position as of the end of the current interim period and as of immediately preceding year-end
• Statement of comprehensive income for the current interim period, cumulative current financial year to date, and comparative SCI for the same interim period and cumulative for the preceding financial year to date
• Statement of changes in equity for the cumulative current year to date and for the year to date period of the preceding financial year
• Statement of cash flows for the cumulative current year to date and for the year to date period of the preceding financial year.

Selected Explanatory Notes and Other Disclosures

• Write-down of inventory to net realizable value
• Asset impairment loss and impairment reversal
• Reversal of provisions for restructuring costs
• Acquisitions, disposals, and commitment to purchase items of PPE
• Litigation settlements
• Correction of prior periods
• Changes in circumstances affecting the fair value of financial assets and financial liabilities
• Related party transactions
• Unremedied loan default and breach of loan agreement
• Changes in classification of financial assets
• Changes in contingent liabilities and contingent assets

Recognition and Measurement of Current Year Revenues and Expenses

• Revenues from sale of products and from services are recognized for interim financial report on the same basis as annual financial reports.
• Revenues should be recognized as earned during an interim period on the same basis as the recognition of income for the full year.
• Costs and Expenses associated directly with products sold or services rendered for annual reporting should be similarly treated for interim reporting purposes.