Interim Financial Reporting

PAS 34
INTERIM FINANCIAL REPORTING

Interim financial reporting means the preparation and presentation of financial statements for
a period of less than a year.
PAS 34 prescribes the minimum content of an interim financial report and the principles for
recognition and measurement in: complete (PAS 1); or condensed financial statements (PAS
34) for an interim period.
Interim financial report may be presented monthly, quarterly, or semiannually.
Quarterly interim reports are the most common; reports are to be made available not later
than 60 days after the end of the interim period.
Based on the standards, interim financial reporting is not that required. But applicable and
relevant now to accountants and as per request of the board or managers for some reason:
before paying tax, we are doing or reporting interim financial reports to BIR and SEC, it could be
complete or condensed financial statements; before obtaining loans , we also report interim
financial statements.
Components of an interim financial report

PAS 34, paragraph 8, provides that an interim financial report shall include, at a minimum, the
following components:
a. Condensed statement of financial position

b. Condensed statement of comprehensive income
c. Condensed statement of changes in equity
d. Condensed statement of cash flow
e. Selected explanatory notes.
The term “condensed” means an entity needs only to provide the minimum information
required under PAS 34.
Paragraph 8A provides that an entity can present items of profit or loss in a separate
condensed income statement.
Nothing in the standard is intended to prohibit or discourage an entity from publishing a

complete set of financial statements, rather than condensed financial statements and selected
explanatory notes.
In other words, PAS 34 allows an entity to publish a set of condensed financial statements or
complete set of financial statements in the interim financial reports.
Presentation of comparative interim statements

1. Statement of financial position
i. Statement of financial period at the end of current interim period.

ii. Comparative statement of financial position at the end of the preceding year.
2. Income Statement
3. Statement of comprehensive income
4. Statement of changes in equity
5. Statement of cash flow
i. Income Statement / statement of comprehensive income / statement of changes in

equity / statement of cash flows cumulatively for the current financial year to date.
ii. Comparative Income Statement / statement of comprehensive income / statement of
changes in equity / statement of cash flows for the comparable financial year to date of
the preceding year.
 If an entity publishes interim financial reports half-yearly, the following comparative

financial statements are presented on June 30, 20x1.
 If an entity publishes interim financial reports quarterly, the following comparative
financial statements are included in the quarterly interim financial report on June 30,
20x1.
Basic principles
1) PAS 34, paragraph 28, provides that an entity shall apply the same accounting policies in
the interim financial statements as are applied in the annual financial statements. The
measure of half-yearly or quarterly shall not affect the measurement of the annual results.
Therefore, measurement for interim financial purpose shall be made on year to date basis.
2) Revenues from product sold or services rendered are generally recognized for interim
reports on the same basis as for the annual period.
3) Cost and expenses are recognized as incurred in interim period.
4) If an entity's business is highly seasonal, PAS 34 encourages disclosure of financial
information for the: latest 12 months; and comparative information for the prior 12-month
period in addition to the interim period financial statements.
5) Paragraph 41 provides that the preparation of interim financial reports generally requires a
greater use of estimation than annual financial reports.
6) Gain and losses shall not be allocated over the interim period.
a) The gain is reported in the interim period when realized.
b) And the loss is reported when incurred.
7) Income tax. Interim period income tax expense shall reflect the same general principles of
income tax accounting applicable to annual reporting. Paragraph 12 of Appendix B of PAS
34 states that the interim period income tax expense is accrued using the annual effective
income tax rate applied to the pretax income of the interim period.

Interim Financial Reporting

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PAS 34

INTERIM FINANCIAL REPORTING

Interim financial report may be presented monthly, quarterly, or semiannually.

Components of an interim financial report

a. Condensed statement of financial position

Nothing in the standard is intended to prohibit or discourage an entity from publishing a

Presentation of comparative interim statements

i. Statement of financial period at the end of current interim period.

3. Statement of comprehensive income

4. Statement of changes in equity

5. Statement of cash flow

i. Income Statement / statement of comprehensive income / statement of changes in

 If an entity publishes interim financial reports half-yearly, the following comparative

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