IAS 34: INTERIM FINANCIAL REPORTING

INTRODUCTION

IAS 34 Interim Financial Reporting applies when an entity prepares an interim financial report,
without a particular mandate as to when an entity should prepare such a report. The standard
prescribes the minimum content for an interim financial report, and also outlines the recognition,
measurement and disclosure requirements for interim financial reports.

IAS 34 was issued in June 1998 and became effective from periods beginning on or after 1
January, 1999. The standard has gone through several amendments as a consequence of the
amendment of other relating standards such as IAS 1, IFRS 8 among others.
IAS 34 does not contain any rule as to which entities should publish interim financial reports, or
the frequency of interim reporting. This is usually stipulated by national regulations which may
vary from one country/jurisdiction, to the other.
The standard however encourages publicly-traded entities;
• to provide interim financial reports at least as of the end of the first half of their financial
year; and
• to make their interim financial reports available no later than 60 days after the end of the
interim period.
Definitions
Interim Period; this is the financial reporting period shorter than a full financial year
Interim Financial Reporting; this is a financial report containing either a complete set or a set of
condensed financial statement for an interim period.

Forms and content of interim financial statements

According to IAS 34, the minimum required component of an interim financial report includes;
• a condensed statement of financial position; this should include as a minimum, each of
the major aspects of assets and equity as were in the SOFP in the previous financial year.
Thus, providing a summary of the economic resources and its financial structure.
• condensed statement of profit or loss and other comprehensive income; this should
include at minimum each of the component item of income and expenses as shown in
profit or loss for the previous financial year, together with the EPS and diluted EPS. It is
presented as either;
- a condensed single statement; or
- a condensed separate income statement and a condensed statement of
comprehensive income
• condensed statement of cash flows
• condensed statement of changes in equity
• selected explanatory notes
Periods required to be presented
IAS 34 requires interim reports to include interim financial statements for the periods listed in
the table below;

Statement Current Comparative

Statement of financial position End of current interim period End of immediately
preceding financial
year

Statement of comprehensive Current interim period and Comparable interim

Income(where applicable, cumulatively for the year-to-date period & year-to-date
statement of separate income of immediately prece-
statement) ding financial year

Statement of changes in equity Cumulatively for the current finan- Comparable Y-T-D
cial year-to-date of immediately pre-
ceding financial year

Statement of cash flows Cumulatively for the current finan- Comparable Y-T-D
cial year-to-date of immediately pre-
ceding financial year

Illustrative Example 1
Meerakul is an incorporated entity seeking to be listed on the NYSE. Illustrates the statements
required to be presented in its half-yearly interim financial reports if it has 31 December, 20X8
year end.
Illustrative Example 2
Same as above, except that its prepared quarterly with the same year end.