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IFRS IAS 34 Interim Financial Reporting
DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. Consult our content information page for more information about the content of this website.
Guidance is given within the standard for the measurement of items such as revenues affected by seasonality and income taxes. When there are market fluctuations or one-time events in an interim period, companies may be inclined to provide interim EPS information based on alternative measures. Under IFRS Standards, EPS information based on alternative measures of earnings may be disclosed and explained in the notes to the financial statements. However, such EPS presentation is not permitted in the statement of profit or loss and OCI under IFRS Standards. Under US GAAP, entities may choose to present basic and diluted other per-share amounts in the notes to the financial statements, but cash flow per share is not permitted.
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- This means that entities preparing interim reports just before major vacation or holiday seasons must recognise higher liabilities, even if employees are likely to utilise all their annual leave in the remaining part of the year.
- In some cases, a statement of financial position at the beginning of the prior period is also required.
This statement can be omitted under US GAAP, although significant changes in equity are disclosed. Under IFRS Standards, a company is only required to disclose in its interim financial statements disaggregated revenue and explain the relationship to revenue for each reportable segment. Other annual disclosures for revenue from contracts with customers typically are not required. In contrast under US GAAP, interim revenue disclosures are the same as annual disclosures for public companies. Private companies are permitted to provide limited revenue disclosures in interim financial statements under US GAAP.
Restoring trust in audit and corporate governance
While measurements in both annual financial statements and interim financial reports are often based on reasonable estimates, the preparation of interim financial reports will generally require a greater use of estimation methods than annual financial statements. According to IAS 34, ABC Inc should prepare interim financial statements that include condensed financial statements (e.g., condensed balance sheet, condensed income statement, condensed statement of changes in equity, and condensed cash flow statement) for the six months ended June 30, 2023. These interim financial statements should be prepared in accordance with the same accounting policies used in the annual financial statements, with some exceptions allowed for practicality.
Actuarial valuations of employee benefits
An interim financial report is a complete or condensed set of financial statements for a period shorter than a financial year. IAS 34 does not specify which entities must publish an interim financial report. IAS 34 applies if an entity using IFRS Standards in its annual financial statements publishes an interim financial report that asserts compliance with IFRS Standards. Certain aspects of financial reporting, such as contingencies measurement, revaluations, and fair value accounting, also adapt to the interim context.
IAS 34 Interim Financial Reporting
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. Complete accounting and tax accounting of the financial and economic activities of enterprises with Ukrainian and foreign capital. Preparation of annual operating budgets;
Preparation of reporting of joint-stock companies for NKCPFR. Preparation and submission of IFRS financial statements in electronic IXBRL format.
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History of IAS 34
Service and interest costs are based on the most recent valuation and must be adjusted for significant market fluctuations, which typically involves updating the discount rate. IAS 34 does not require assets to be tested for impairment at each interim period closing. An assessment of impairment indicators is considered sufficient in most instances (IAS 34.B35-B36). IFRS Sustainability Standards are developed to enhance investor-company dialogue so that investors receive decision-useful, globally comparable sustainability-related disclosures that meet their information needs.
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