IAS 34

Interim Financial Reporting

1Objective and scope

IAS 34 prescribes the minimum content of an interim financial report (a financial report for a period shorter than a full financial year), and the accounting recognition and measurement principles to be applied in it. It does not mandate which entities must publish interim reports, how frequently, or how soon after the end of an interim period - that is left to securities regulators, governments and stock exchanges.

2Key definitions

3Minimum content and the discrete-period approach

• A condensed statement of financial position
• A condensed statement of profit or loss and other comprehensive income
• A condensed statement of changes in equity
• A condensed statement of cash flows
• Selected explanatory notes

An entity applies the SAME accounting policies in its interim financial statements as in its most recent annual financial statements (except for a policy change adopted after that most recent annual report, which is applied retrospectively). Each interim period is treated as a discrete reporting period in its own right for most recognition purposes - revenues that are seasonal, for example, are not anticipated or deferred at an interim date if it would not also be appropriate to do so at the year end. The one deliberate exception: income tax expense for an interim period is measured using the estimated average annual effective tax rate applied to the interim period's pre-tax income, not the interim period's own marginal rate.

4Presentation and disclosure

• A statement that the same accounting policies and methods of computation are followed as in the most recent annual financial statements, or a description of the nature and effect of any change
• Explanatory comments about seasonality, unusual items affecting the interim period, and changes in estimates of amounts reported in prior interim periods
• Dividends paid, and segment information where the entity is otherwise required to report it under IFRS 8

5Examinable focus