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IAS 34, titled Interim Financial Reporting, is an International Accounting Standard issued by the International Accounting Standards Board (IASB). It prescribes the minimum content of an interim financial report and the principles for recognition and measurement in complete or condensed financial statements for an interim period. [1]
IAS 34 does not mandate which entities are required to publish interim financial reports, how frequently, or how soon after the end of an interim period. These are typically decided by national governments, securities regulators, and stock exchanges. [2] However, if an entity is required or elects to publish an interim report in accordance with IFRS, it must follow the requirements of this standard.
An entity may choose to provide either a full set of financial statements (as described in IAS 1) or condensed financial statements. A condensed report must include, at a minimum: [3]
The fundamental principle in IAS 34 is that the same accounting policies should be applied in the interim report as are applied in the annual financial statements. [4]
Measurements for interim reporting purposes are made on a year-to-date basis, so that the frequency of reporting does not affect the measurement of the annual results. [5]
Unlike other expenses that are recognized when incurred, income tax expense in an interim period is recognized based on the best estimate of the weighted average annual income tax rate expected for the full financial year. [6]
| Interim Tax Expense = | Estimated Annual Effective Tax Rate |
| × Interim Pre-tax Income |
Revenues that are received seasonally, cyclically, or occasionally within a financial year should not be anticipated or deferred at an interim date if anticipation or deferral would not be appropriate at the end of the entity's financial year. [7] For example, a retailer with high Christmas sales must recognize that revenue in the fourth quarter, not spread it over the year.
In deciding how to recognize, measure, classify, or disclose an item for interim financial reporting purposes, materiality should be assessed in relation to the interim period financial data itself, rather than the estimated annual data. [8]
Interim reports must include comparative periods as follows: [9]
| Statement | Current Period | Comparative Period |
|---|---|---|
| Balance Sheet | 30 June 2025 | 31 Dec 2024 |
| Income Statement (Q2) | April–June 2025 | April–June 2024 |
| Income Statement (YTD) | Jan–June 2025 | Jan–June 2024 |
IAS 34 prescribes the minimum content of an interim financial report and the principles for recognition and measurement in complete or condensed financial statements for an interim period. [10]
| Paragraph | Category | Disclosure Requirement | Description / Examples |
|---|---|---|---|
| IAS 34.15 | Significant Events | Update to Annual Info | An explanation of events and transactions that are significant to an understanding of the changes in financial position and performance since the last annual report. |
| IAS 34.16A(a) | Accounting Policies | Consistency of Methods | Disclosure that the same accounting policies and methods of computation are followed as in the most recent annual statements (or a description of changes). |
| IAS 34.16A(b) | Seasonality | Seasonal/Cyclical Factors | Explanatory comments about the seasonality or cyclicality of interim operations (e.g., retail spikes or agricultural cycles). |
| IAS 34.16A(c) | Unusual Items | Nature and Amount | Nature and amount of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence. |
| IAS 34.16A(d) | Estimates | Changes in Estimates | Changes in estimates of amounts reported in prior interim periods of the current financial year or prior financial years. |
| IAS 34.16A(e) | Capital | Issuances and Buybacks | Issues, repurchases, and repayments of debt and equity securities during the interim period. |
| IAS 34.16A(f) | Dividends | Dividends Paid | Dividends paid (aggregate or per share) separately for ordinary shares and other shares. |
| IAS 34.16A(g) | Segments | Segment Information | If IFRS 8 applies, specific segment data including revenues from external customers, intersegment revenues, and segment profit/loss. |