IAS 34 — INTERIM

FINANCIAL REPORTING
Presented by:
Snehasish Barua, FCA
Overview
IAS 34 Interim Financial Reporting applies when
an entity prepares an interim financial report,
without mandating when an entity should
prepare such a report. Permitting less
information to be reported than in annual
financial statements (on the basis of providing an
update to those financial statements), the
standard outlines the recognition, measurement
and disclosure requirements for interim reports.
Objective
■ IAS 34 recommends that entities should produce interim financial reports,
and for entities that do, it gives principles and guidelines for their
production.

■ Interim financial reports is a financial report containing either a complete

set of financial statements (IAS 1) or a set of condensed financial
statements for an interim period (IAS 34)

■ An interim period is a financial reporting period shorter than one year.

Scope
IAS 34 does not make the preparation of interim financial reports mandatory.
It does however recommend it for entities whose equity or debt securities are
publicly traded.

Publicly traded entities are encouraged to provide interim financial reports:

■ For at least the first six months of the financial year

■ Available no later than 60 days after the end of the interim period.
Scope
The standard gives details of the:

■ Minimum content for the report,

■ Periods covered, and

■ Recognition and measurement principles.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Minimum components
The minimum component elements are

■ Condensed statement of financial position

■ Condensed statement of profit or loss and other comprehensive income

(either a single statement or two statements)

■ Condensed statement of changes in equity

■ Condensed statement of cash flows

■ Selected explanatory notes

Recognition and measurement
The general rule is to use the same recognition and measurement principles
in its interim statements as it does in its annual financial statements.

IAS 34 gives special considerations to a number of key areas

■ Foreign currency – apply IAS 21 and use closing rate at interim date

■ Inventory – value at lower of cost and NRV (calculated at interim date)

■ Tax – tax rate used should be the expected average rate of tax for the full
year
Examples
British American Tobacco
Q3 Financial Statements 2019
Questions?
Presenter’s Contact Details

Snehasish Barua, FCA (ICAB), ACA (ICAEW)

Partner
Snehasish Mahmud & Co
Chartered Accountants
+8801819319319
snehasish@smac-bd.com
www.smac-bd.com