IAS 34 Interim Financial Report
IAS 34 Interim Financial Report is a report which is prepared before the completion of the financial year. In this report financial statements are prepared in shorter period not even completion of one year.
IAS 34 doesn’t clarify that which business entity should prepare an Interim Financial Report. IAS 34 applies when an entity that uses IFRS standards issues an interim financial report in its annual financial statements stating compliance with IFRS requirements.
IAS 34 describes the minimum number of contents required to maintain for preparation of the Interim Financial Report and also, the recognition and measurement principles applicable to an interim financial report.
The objective of IAS 34 is to prescribe the minimum content of an interim financial report and prescribe the principles for recognition and measurement in financial statements presented in an interim report.
The norm requires publicly traded companies to provide interim financial reports consistent with the recognition, measurement, and disclosure of the principles set out in IAS 34, at least at the end of the first half of their financial year, and to make these reports available no later than 60 days after the end of the interim period.
The minimum components specified for an interim financial report are:
- A condensed balance sheet (statement of financial position)
- Condensed statement of comprehensive income and condensed income statement
- A condensed statement of changes in equity
- A condensed statement of cash flows
- Selected explanatory notes.