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Wiley IFRS: Practical Implem entation Guide and Workbook
report will also have access to its most recent annual report. As a result , lAS 34 prevents the
repetiti on of annual disclosures in interim reports. lAS 34, paragraph 16, sets out a long list of
disclosures including
• Accounting policy changes
• Seasonality or cyc licality of operations
• Unusual items and changes in estimates
• Dividends paid and mater ial events after the end of the interim period
• Changes in the structure of the entity including business combinations and restructurings
• Segment revenue and result
• Changes in contingent liabilities or assets since the last annual balance sheet date
• Issue, repurchase, and repayment of debt and equity
5. DISCLOSURE OF COMPLIANCE WITH IFRS
If the entity' s interim financial report is in compliance with lAS 34, that fact should be disclosed.
An interim financial report should not claim compliance with IFRS generally unless it complies
with all applic able International Financial Reporting Standards and interpretations of the
International Financia l Reporting Interpret ations Commi ttee (IFRIC) .
6. PERIODS TO BE PRESENTED BY INTERIM FINANCIAL STATEMENTS
6.1
lAS 34 require s this information to be presented:
• Balance sheet as of the end of the current interim period and a comparative balance sheet as
of the end of the preceding financia l year
• Income statements for the current interim period and for the current financia l year to date,
with comparative income statements for the comparable interim periods (current and year-to–
date) of the preceding financial year
• Statement showi ng changes in equity for the current financial year to date, with a compara–
tive statement for the comp arable year-to-date period of the preceding financial year
• Cash flow statement for the current financial year to date, with a comparative statement for
the comparable year-to-date period of the preceding financial year
6.2 lAS 34 recognizes the usefulness of additional information if the business is seaso nal by
encouraging for those businesses the disclosure of financial information for the latest 12 months,
and compa rative information for the prior 12-mon th period, in add ition to the interim period finan–
cial statements.
7. MEASUREMENT
7.1
Measurements for interim reporting purposes should be made on a "year-to-date" basis, so
that the frequency of the entity's reporting should not affect the measurement of its annual results.
7.2 The same definiti ons and recognition criteri a apply whether dealing with interim or annual fi–
nancial reports.
7.3 lAS 34 requires the entity to consider these point s:
• Revenues that are. received seaso nally, cyclically, or occasionally within a financia l year
should not be treated differently from in the annual financial statements.
• Costs and expen ses are recognized as incurred and are not treated differently in the annual fi–
nancial statements.
• Income tax expenses should be recognized based on the best estimate of the weighted–
average annual income tax rate expec ted for the full financia l year.
• It is recognized that the preparation of interim reports will often requ ire the grea ter use of
estimates.
8. SUNDRY POINTS
8.1 The materiality of items is to be assessed in relation to the interim period financial data with
the main aim being to include all information relevant to the entity 's financial position and per–
formance during that period .