FACT SHEET February 2010 IAS 34 Interim Financial Reporting (This fact sheet is based on the standard as at 1 January 2010.) Important note: This fact sheet is based on the requirements of the International Financial Reporting Standards (IFRSs). In some jurisdictions, the IFRSs are adopted in their entirety, in other jurisdictions the individual IFRSs are amended. In some jurisdictions the requirements of a particular IFRS may not have been adopted. Consequently, users of the fact sheet in various jurisdictions should ascertain for themselves the relevance of the fact sheet to their particular jurisdiction. The application date included below is the effective date of the most recent changes made to the standard. IASB application date (non-jurisdiction specific) IAS 34 is applicable for annual reporting periods commencing on or after 1 July 2009. scope IAS 34 applies if an entity is required or elects to prepare interim financial reports that are general purpose financial statements or are held out to be general purpose financial statements in accordance with International Financial Reporting Standards. Prescribed accounting treatment Minimum components of an interim financial report IAS 34 does not discourage an entity from publishing a complete financial report (as defined in IAS 1 Presentation of financial statements) as its interim financial report. However, it does prescribe the following minimum components of an interim financial report: a condensed statement of financial position a condensed statement of comprehensive income, presented as either: a condensed single statement or a condensed separate income statement and a condensed statement of comprehensive income; a condensed statement of changes in equity; a condensed statement of cash flows; and selected explanatory notes. Form and content on interim financial reports Where an entity publishes a complete financial report as its interim financial report, IAS 34 requires the form and content of the report to be prepared in accordance with the requirements of IAS 1. Where an entity publishes a condensed financial report as its interim financial report, the condensed report shall include, as a minimum, each of the headings and subtotals that were included in its most recent annual financial report and the prescribed selected explanatory notes. Additional line items and notes shall be included in the condensed interim financial report if their omission would make the condensed interim financial report misleading. IAS 34 also states that basic and diluted earnings per share shall be presented on the face of the income statement, whether complete or condensed, for an interim period.
An interim financial report is prepared on a consolidated basis if the entity s most recent annual financial statements were consolidated statements. If an entity s annual financial statements includes the parent s separate financial statements and consolidated financial statements, IAS 34 neither requires nor prohibits the inclusion of the parent s separate statements in the interim financial report. Selected explanatory notes If material, and not disclosed elsewhere in the interim financial report, IAS 34 requires that the notes accompanying the interim financial report include: a statement that the same accounting policies and methods of computation are followed in the interim financial report as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change explanatory comments about the seasonality or cyclicality of interim operations the nature and amount of items affecting assets, liabilities, equity, profit or loss, or cash flows that are unusual because of their size, nature or incidence the nature and amount of changes in estimates of amounts reported in prior interim periods of the current annual reporting period, or changes in estimates of amounts reported in prior annual reporting periods, if those changes have a material effect in the current interim period issuances, repurchases and repayments of debt and equity securities dividend paid (aggregate or per share) separately for ordinary shares and other shares segment information, only if entity is within the scope of IFRS 8 Operating Segments requires disclosure, per paragraph 16g material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period effects of changes in the composition of the entity during the interim period, including business combinations, obtained or losing control of subsidiaries and long-term investments, restructurings, and discontinued operations. In the case of business combinations, the entity shall disclose the information required by IFRS 3 Business Combinations. changes in continent liabilities or contingent assets since the end of the last annual reporting period. IAS 34 also requires where an entity has complied with the requirements of IAS 34, that fact shall be disclosed; however, the interim financial report shall not be described as complying with the standards unless it complies with all of the requirements of each applicable standard. PERIODS TO BE PRESENTED Assuming half yearly interim financial reports are produced for the half year ended 30 June 2010: Current period Comparative period Statement of Financial Position at 30 June 2010 31 December 2009 Statement of Comprehensive Income 6 months ending 30 June 2010 30 June 2009 Statement of Cash Flows 6 months ending 30 June 2010 30 June 2009 Statement of Changes in Equity 6 months ending 30 June 2010 30 June 2009 Disclosures Refer Appendix 1 for a checklist to assist with IAS 34 disclosure requirements. Important definitions Interim financial report Interim period a financial report containing either a complete financial statements (as described in IAS 1) or a condensed financial statements (as described in IAS 34) for an interim period. a reporting period shorter than a full annual reporting period. 2
Australian specific requirements The Australian equivalent standard is AASB 134 which is applicable for annual reporting periods beginning on or after 1 July 2009. Scope exemption AASB 134 does not apply to interim financial reports for the General Government Sector of each government. Appendix 1 Disclosure checklist This checklist can be used to review your financial statements you should complete the Yes / No / N/A column about whether the requirement is included and provide an explanation for No answers to ensure the completeness of disclosures. Yes / No / N/A Explanation (if required) IAS 34: Interim Financial Reporting Applicable for financial statement periods beginning on or after 1 July 2009. IAS 34.8 IAS 34.16 Does the interim financial report include, at a minimum: a) A condensed statement of financial position b) A condensed statement of comprehensive income, presented as either: i. A condensed single statement or ii. A condensed separate income statement and a condensed statement of comprehensive income c) A condensed statement of changes in equity d) A condensed statement of cash flows and e) Selected explanatory notes. Has the entity included the following information, in the notes to the interim financial report, if material and if not disclosed in the interim financial report: a) A statement that the same accounting policies and methods of computation are followed in the interim financial report as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change. b) Explanatory comments about the seasonality of cyclicality of interim operations. c) The nature and amount of items affecting assets, liabilities, equity, profit or loss, or cash flows that are unusual because of their nature, size or incidence. d) The nature and amount of changes in estimates of amounts reported in prior interim periods of the current annual reporting period or changes in estimates of amounts reported in prior annual reporting periods, if those changes have a material effect in the current interim period. e) Issuances, repurchases, and repayments of debt and equity securities. f) Dividends paid (aggregate or per share) separately for ordinary shares and other shares. g) The following segment information (where IFRS 8 is applicable): i. Revenues from external customers, if included in the measure of segment profit or loss reviewed by the CODM or otherwise regularly provided to the CODM ii. Intersegment revenues, if included in the measure of segment profit or loss reviewed by the CODM or otherwise regularly provided to the CODM 3
Yes / No / N/A Explanation (if required) iii. A measure of segment profit or loss iv. Total assets for which there has been a material change from the amount disclosed in the last annual financial statements v. A description of differences from the last annual financial statements in the basis of segmentation or in the basis of measurement of segment profit or loss vi. A reconciliation of the total of the reportable segments measures of profit or loss to the entity s profit or loss before tax expense and discontinued operations. h) Material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period. i) The effect of changes in the composition of the entity during the interim period, including business combinations, obtaining or losing control of subsidiaries and long-term investments, restructuring s and discontinued operations. Has the entity disclosed the information required by IFRS 3. j) Changes in contingent liabilities or contingent assets since the end of the last annual reporting period. 4
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