SARANSH Indian Accounting Standards
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Minimum components of an interim financial report
Overview of Ind AS 34
It shall include at a minimum
Objective Scope Definitions Content of an Disclosure in Recognition Restatement
Interim Financial Annual Financial and of Previously
a condensed a condensed statement Report Statementsa condensedMeasurement
a condensed statement statement Reported
selected
balance sheet of profit and loss of changes in equity of cash flows explanatory notes
Interim
Minimum components of an Periods
Important points to remember
interim financial report Same accounting policies as annual
1. The interim financial report is intended to provide an update on the latestreceived
Revenues completeseasonally,
set of annual financial statements
2. It focuses on new
Form activities, events,
and content ofand circumstances and does not duplicate information previously reported
interim cyclically, or occasionally
3. Ind AS 34 does not prohibit
financial or discourage an entity from publishing a complete set of financial statements (as described in
statements
Ind AS 1) in its interim financial report Costs incurred unevenly
4. Ind ASSignificant
34 does notevents and
prohibit ortransactions
discourage an entity from including in condensed interim financial statements more than the
during the financial year
minimum line items or selected explanatory notes
5. Ind AS 34 requires to includeOtherall disclosures
the disclosures required by this Standardthe
Applying as well as those and
recognition required by other Ind AS
Disclosure of compliance with Ind AS measurement principles
Periods for which interim financial Use of estimates
Form and content of interim financial statements
statements are required to be presented
Materiality
If in its interim financial report, an entity publishes
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A complete set of A set
Minimum of condensed
components of an interim financial report A statement presenting
financial statements financial statements components of profit or loss
Its form and content shall conform to the It shall
It shall include
include, at a minimum
at a minimum, Entity shall present basic and
requirements of Ind AS 1 for a complete Each of the headings and subtotals that diluted earnings per share for
set of financial statements were included in its most recent annual that period
financial statements
a condensed a condensed statement Theaselected
condensed statement a condensed
explanatory notes as required statement selected
balance sheet of profit and loss of Standard
by this changes in equity of cash flows explanatory notes
Additional line items or notes to avoid any
Important points to remember misleading of report
1. The interim financial report is intended to provide an update on the latest complete set of annual financial statements
2. It focuses on new activities, events, and circumstances and does not duplicate information previously reported
3. Ind AS 34 does not prohibit or discourage an entity from publishing a complete set of financial statements (as described in
Ind AS 1) in its interim financial report
4. Ind AS 34 does not prohibit or discourage an entity from including in condensed interim financial statements more than the
minimum line items or selected explanatory notes
5. Ind AS 34 requires to include all the disclosures required by this Standard as well as those required by other Ind AS
Form and content of interim financial statements
If in its interim financial report, an entity publishes
A complete set of A set of condensed A statement presenting
financial statements financial statements components of profit or loss
Its form and content shall conform to the It shall include, at a minimum, Entity shall present basic and
requirements of Ind AS 1 for a complete Each of the headings and subtotals that diluted earnings per share for
set of financial statements were included in its most recent annual that period
financial statements
The selected explanatory notes as required
by this Standard
Additional line items or notes to avoid any
misleading of report
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SARANSH Indian Accounting Standards
Note:
1. An interim financial report is prepared on a consolidated basis if the entity’s most recent annual financial statements were
consolidated statements.
2. If an entity’s annual financial report includes the parent’s separate financial statements in addition to consolidated financial
statements, then Ind AS 34 does not restrict or mandate to include the parent’s separate statements in the entity’s interim financial
report prepared on a consolidated basis.
Significant events and transactions
Include in interim financial report Do not include in interim financial report
An explanation of events and transactions that are significant Insignificant updates to the information that was reported in
to an understanding of the changes in financial position and the notes in the most recent annual financial report because
performance of the entity since the end of the last annual the user will have access to the most recent annual financial
reporting period. report carrying such information.
Information disclosed in relation to those events and
transactions shall update the relevant information presented
in the most recent annual financial report.
List of events and transactions for which disclosures would be required if they are significant:
(a) the write-down of inventories to net realisable value and the reversal of such a write-down;
(b) recognition of a loss from the impairment of financial assets, property, plant and equipment, intangible assets, or other assets,
and the reversal of such an impairment loss;
(c) the reversal of any provisions for the costs of restructuring;
(d) acquisitions and disposals of items of property, plant and equipment;
(e) commitments for the purchase of property, plant and equipment;
(f ) litigation settlements;
(g) corrections of prior period errors;
(h) changes in the business or economic circumstances that affect the fair value of the entity’s financial assets and financial liabilities,
whether those assets or liabilities are recognised at fair value or amortised cost;
(i) any loan default or breach of a loan agreement that has not been remedied on or before the end of the reporting period;
(j) related party transactions;
(k) transfers between levels of the fair value hierarchy used in measuring the fair value of financial instruments;
(l) changes in the classification of financial assets as a result of a change in the purpose or use of those assets; and
(m) changes in contingent liabilities or contingent assets.
Note: The list is not exhaustive.
Other Disclosures
Shall be given (Refer the list in para 16A of Ind AS 34)
Either Or
In the interim financial statements Incorporated by cross-reference from the interim financial statements to some other
statement (such as management commentary or risk report)
Statements should be available to users of the financial statements on the same terms as the interim financial statements and at
the same time otherwise the interim financial statements shall be considered as incomplete
The information shall normally be reported on a financial year-to-date basis.
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SARANSH Indian Accounting Standards
Periods for which interim financial statements are required to be presented
Interim reports shall include interim financial statements (condensed or complete) i.e.
Statements of Statement of Statement of cash
Balance sheet profit and loss changes in equity flows
as of the end of the for the current interim period cumulatively for the cumulatively for the
current interim cumulatively for the current current financial year to current financial year to
period financial year to date date date
a comparative balance comparative statements comparative statement a comparative statement
sheet as of the end of profit and loss for the for the comparable year- for the comparable year-
of the immediately comparable interim periods to-date period of the to-date period of the
preceding financial (current and year-to-date) of immediately preceding immediately preceding
year the immediately preceding financial year financial year
financial year
Note: For an entity whose business is highly seasonal, financial information for the twelve months up to the end of the interim period and
comparative information for the prior twelve-month period may be useful.
Points to remember
Disclosure of If an entity’s interim financial report is in compliance with this Standard, that fact shall be disclosed.
compliance
with Ind AS An interim financial report shall be described as complying with Ind ASs when it complies with all of the requirements of
Ind ASs.
Materiality In deciding how to recognise, measure, classify, or disclose an item for interim financial reporting purposes, materiality
shall be assessed in relation to the interim period financial data.
It shall be recognised that interim measurements may rely on estimates to a greater extent than measurements of annual
financial data.
Disclosure If an estimate of an amount reported in an interim period is changed significantly during the final interim period of the
in annual financial year but a separate financial report is not published for that final interim period, the nature and amount of that
financial change in estimate shall be disclosed in a note to the annual financial statements for that financial year.
statements
An entity is not required to include additional interim period financial information in its annual financial statements.
Recognition and Measurement
Same accounting Apply the same accounting policies in its interim financial statements as are applied in its annual financial
policies as annual statements, except for accounting policy changes made after the date of the most recent annual financial
statements that are to be reflected in the next annual financial statements.
Measurements for interim reporting purposes shall be made on a year-to-date basis.
The amounts reported in prior interim periods are not retrospectively adjusted. However, that the nature and
amount of any significant changes in estimates be disclosed.
Revenues received Such revenues shall not be anticipated or deferred as of an interim date if anticipation or deferral would not be
seasonally, appropriate at the end of the entity’s financial year.
cyclically, or
occasionally Some entities consistently earn more revenues in certain interim periods of a financial year than in other interim
periods. Such revenues are recognised when they occur.
Costs incurred Such costs shall be anticipated or deferred for interim reporting purposes if, and only if, it is also appropriate to
unevenly during anticipate or defer that type of cost at the end of the financial year.
the financial year
Use of estimates Preparation of interim financial reports generally will require a greater use of estimation methods than annual
financial reports.
Restatement A change in accounting policy, shall be reflected:
of previously (a) by retrospective application, with restatement of prior period financial data as far back as is practicable; or
reported interim
(b) if the cumulative amount of the adjustment relating to prior financial years is impracticable to determine,
periods
then under Ind AS 8 the new policy is applied prospectively from the earliest date practicable.
Interim Financial An entity shall not reverse an impairment loss recognised in a previous interim period in respect of goodwill.
Reporting and
Impairment
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