CFAS

• Interim Financial Report - Financial report that covers a period shorter than a year
• OBJECTIVE OF IAS 34

  The objective of this Standard is to prescribe the:

  • minimum content of an interim financial report

  • recognition and measurement in complete or condensed financial

  statements in an interim period.
• The interim financial report is intended to:

  • update the latest complete set of annual financial statements
  • It focuses on new activities, events, and cirmcumstances and does not duplicate information previously reported
• This Standard does not mandate which entities should produce interim financial reports, how frequently, or how soon after the end of an interim period.
• The Securities and Exchange Commission, the Philippine Stock Exchange, and some trade associations require entities covered by the reportorial requirements of Revised Securities Act to file quarterly interim financial reports within 45 days after the end of each of the first three quarters.
• IAS 34, however, encourages publicly listed entities to provide at least a semi-annual financial report for the first half the year to be issued not later than 60 days after the end of the interim period.
• If an entity’s interim financial reporting is described as conforming with IFRSs, it must comply with all the requirements of this Standard.
• Interim period is a financial reporting period shorter than a full financial year.
• An interim financial report shall include, at a minimum, the following components:

  1. condensed statement of financial position
  2. condensed statement of comprehensive income, prepared as either

  • a single condensed statement
  • a condensed separate statement of profit or loss and a condensed statement of comprehensive income

  3. condensed statement of changes in equity

  4. condensed statement of cash flows; and

  5. selected explanatory
• At a minimum, condensed interim financial statements include each of the headings and subtotals that were included in the entity’s most recent annual financial statements and the selected

  explanatory notes required by IAS 34. Additional line items or notes are provided if their omission makes

  the condensed financial statements misleading.
• Significant events and transactions

  • write-down of inventories to net realizable value and reversal thereof
  • impairment losses and reversal thereof
  • reversal of provision for restructuring costs
  • acquisitions and disposals of PPE, including purchase commitments
  • litigation settlements
  • corrections of prior period errors
  • business or economic circumstances affecting the fair value of financial assets and financial liabilities
  • unremedied loan default or breach of loan agreement
  • related party transactions
  • transfers between levels of the fair value hierarchy used in measuring the fair value of financial instruments
  • changes in the classification of financial assets
  • changes in contingent liabilities
• The following disclosures shall be given either in the interim financial statements or incorporated by cross-reference form the interim financial statements to some other statement that is available to users of the financial statements on the same terms as the interim financial statements and at the same time
• Items disclosed in the interim financial report


  • Statement that the same accounting policies were used in the interim financial statements as those used in the latest annual financial statements. If there have been changes, those changes are disclosed.
  • Explanation of seasonality or cyclicality of interim operations
  • Unusual items affecting the financial statement elements
  • Changes in accounting estimates
  • Issuances and settlements of debt and equity securities
  • Dividends paid
  • Segment information (if the entity is covered by IFRS 8)
  • Events after the reporting period
  • Changes in the composition of the entity, e.g., business combinations, obtaining or losing control of subsidiaries, restructurings, and discontinued operations
  • Disclosures on the fair value of financial instruments
  • Disclosures required by IFRS 12 when the entity becomes or ceases to be an investment property
  • Disaggregation of revenue from contracts with customers as required by IFRS 15
  • The entity presents basic and diluted earnings per share if the entity is within the scope of IAS 33
• Statement of financial position


  • Statement of financial position at the end of current interim period
  • Comparative statement of financial position at the end of preceding year
• Income statement


  • Income statement for the current interim period
  • Income statement cumulatively for the current financial year to date
  • Comparative income statement for the comparable interim period of the preceding year
  • Comparative income statement cumulatively for the comparable financial year to date of the preceding year
• Statement of financial position

  • Statement of financial position at the end of current interim period
  • Comparative statement of financial position at the end of preceding year
• Income statement


  • Income statement for the current interim period
  • Income statement cumulatively for the current financial year to date
  • Comparative income statement for the comparable interim period of the preceding year
  • Comparative income statement cumulatively for the comparable financial year to date of the preceding year
• Statement of comprehensive income


  • Statement of comprehensive income for the current interim period
  • Statement of comprehensive income cumulatively for the current financial year to date
  • Comparative statement of comprehensive income for the comparable interim period of the preceding year
  • Comparative statement of comprehensive income cumulatively for the comparable financial year to date of the preceding year
• Statement of changes in equity


  • Statement of changes in equity cumulatively for the current financial year to date
  • Comparative statement of changes in equity for the comparable financial year to date of the preceding year
• Statement of cash flows

  • Statement of cash flows cumulatively for the current financial year to date
  • Comparative statement of cash flows for the comparable financial year to date of the preceding year
• If an entity’s 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.
• In making assessments of materiality, it shall be recognized that the interim measurements may rely on estimates to a greater extent than measurements of annual financial data. The overriding goal is to ensure that an interim financial report includes all information that is relevant to understanding an entity’s financial position and performance during the interim period.
• An entity shall apply the same accounting policies in its interim financial statements as are applied in its annual financial statements, except for accounting policy changes after the date of the most recent annual financial statements that are to be reflected in the next annual financial statements.
• Discrete view


  According to paragraph 29 of this Standard, "requiring that an entity apply the same accounting policies in its interim financial statements as in its annual statements may seem to suggest that interim period measurements are made as if each interim period stands alone as an independent reporting period"
• Integral view


  According to paragraph 29 of this Standard, "providing that the frequency of an entity's reporting shall not affect the measurement of its annual results, paragraph 28 acknowledges that an interim period is a part of a larger financial year"