The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

2.15 INTERIM REPORTING

2.15.1 Introductory Remark

This Part of the chapter deals with first IFRS interim financial statements. Chapter 7 later treats interim financial statements under IFRSs, U.S. GAAP, and SEC rules and regulations.

2.15.2 When IFRS 1 Applies to Interim Financial Statements

IFRS 1 applies to interim financial statements that fall within the annual period of its first IFRS financial statements, but only to the extent that the entity presents interim information and does it according to IAS 34.358 Paragraph 7.2.3.1 explains that an entity that reports under IFRSs and that publishes interim financial statements has no obligation to follow IAS 34. However, if interim financial statements included in the period of the first IFRS financial statements assert their compliance with IAS 34, they must apply IFRS 1.359

Planning Point: An entity that does not report under IFRSs is free to use IAS 34 if it wishes. Conversely, it is doubtful whether a first-time adopter may elect to apply IAS 34 but not all other IFRSs. This is obviously not stating compliance with IFRSs. By a literal reading of IFRS 1, simple adherence to IAS 34 would make IFRS 1 mandatory to a first-time adopter. Here, the standard does not mention compliance with all other IFRSs. However, this appears to be necessary, as an explicit and unreserved statement of compliance with all IFRSs is the condition for applying IFRS 1.

Chapter 7 develops the topic of dual reporting in interim financial statements. ...