IFRS PRACTICAL IMPLEMENTATION GUIDE AND WORKBOOK

27 INTERIM FINANCIAL REPORTING (lAS 34)

1. OBJECTIVE 1.1

The purpose of lAS 34, Interim Financial Reporting. is to set out the minimum content of such a report and to describe the recognition and measurement princ iples in inter im financial statements. 1.2 lAS 34 doe s not detail which entities should publish interim financial report s, how frequent ly they should be publi shed , or how soon they should be published after the end of the interim period. The Standard applies where an entit y is required or elects to publish an interim financial report . The Internat ional Accounting Standards Board (IASB) encourages publicly traded entities to pro– vide such reports at least at the end of the half year, and such reports are to be made avai lable not later than 60 days after the end of the interim period. An entity that does not prepare interim finan– cial reports or provides ones that do not comply with lAS 34 does not compromise its compliance with International Financial Report ing Standards (IFRS) in its annual financi al statements. 2. DEFINITIONS OF KEY TERMS (in accor dance with l AS 34) 3. FORM AND CONTENT OF INTERIM REPORTS 3.1 lAS 34 defines the minimum content of an interim financia l report as including condensed fi– nancial statements and selected explanatory notes. It does not detail the information that should be included in these condensed financial statements. An entity should determine the level of detail and ensure that the condensed financial statements can be compared with the previous annual financial statements. The interim financial report should provide an update on the latest financia l statements. 3.2 The minimum elements specified for an interim financial report are a • Conden sed balance sheet • Condensed income statement • Condensed statement of change s in equity • Condensed cash flow statement • Selected explanatory notes 3.3 If an entity issues a complete set of financial statements in the interim report, those financia l statements should comply with lAS I. 3.4 If the entity publi shes interim financial statements that are condensed, then they should in– clude, as a minimum, the headings and subtotals included in the most recen t annual financial statements and the explanatory notes as required by lAS 34. Additional line items or notes should be included if omitti ng them would make the interim financial statements misleading. 3.5 Basic and diluted earnings per share should be presented on the face of the income statement. 3.6 If the entity's most recent annual financial statements are prepared on a conso lidated basis, the interim financi al report should be prepared on the same basis. 4. EXPLANATORY NOTES The explanatory notes are designed to provide an explanation of significant events and transactions arisi ng since the last annual financia l statements. lAS 34 assumes that readers of an entity's interim Interim period. A financi al reporting period shorter than a full financial year. Interi m finan cial re port. A financial report that contains either a complete or condensed set of financial statements for an interim period.