Podcast
Questions and Answers
What is the definition of interim financial reporting?
What is the definition of interim financial reporting?
What type of financial statement is required to be presented in an interim financial report?
What type of financial statement is required to be presented in an interim financial report?
Who is mandated by the IAS board to file/publish interim financial reports?
Who is mandated by the IAS board to file/publish interim financial reports?
What information should be presented in a statement of financial position in an interim report?
What information should be presented in a statement of financial position in an interim report?
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What is the minimum component of an interim financial report?
What is the minimum component of an interim financial report?
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What is the purpose of presenting comparative information in interim financial reports?
What is the purpose of presenting comparative information in interim financial reports?
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Can an enterprise publish a complete set of financial statements as its interim financial report?
Can an enterprise publish a complete set of financial statements as its interim financial report?
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Which of the following transactions requires disclosure in the interim financial report?
Which of the following transactions requires disclosure in the interim financial report?
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Where should basic and diluted earnings per share be presented?
Where should basic and diluted earnings per share be presented?
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What is the purpose of IAS 34?
What is the purpose of IAS 34?
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How should revenues from the sale of products and services be recognized in an interim financial report?
How should revenues from the sale of products and services be recognized in an interim financial report?
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What is the treatment of costs and expenses associated directly with products sold or services rendered for interim reporting purposes?
What is the treatment of costs and expenses associated directly with products sold or services rendered for interim reporting purposes?
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Study Notes
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.
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Description
Learn about interim financial reporting, which covers a period shorter than a full financial year, and who is required to file or publish these reports according to the IAS board.
