Interim financial statements

The IASB does not require companies to produce financial statements other than on an annual basis, but it does have a standard, IAS 34 Interim Financial Reporting, that tells IFRS companies what is the minimum information that should be in interim statements, in circumstances where national law or stock exchange regulations require the production of three-monthly or six-monthly figures.

Essentially the minimum set of documents (IAS 34.8) should be:

  • condensed statement of financial position
  • condensed statement of comprehensive income
  • condensed statement of cash flows
  • condensed statement of changes in equity
  • selected notes.

The standard does not ‘discourage’ people from providing full statements, but where condensed ones are used, says these should preserve the main headings and subtotals of the full annual statements. The objective in interim reports should be (IAS 34. 6):

to provide an update on the latest complete set of annual financial statements. Accordingly, it focuses on new activities, events, and circumstances and does not duplicate information previously reported.

However, the standard does include a long list of the minimum footnotes that should be provided, including a statement that accounting policies are the same as in the annual statements, limited segment information and comments on any seasonality in the group’s business. The statements must include comparative information. For the balance sheet this is the immediately preceding annual ...

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