|
Commission Regulation (EC) No 1725/2003
of 29 September 2003
adopting certain international accounting standards in
accordance with Regulation (EC) No 1606/2002
of the European Parliament and of the Council
Content |
|
- |
This International Accounting
Standard was approved by the IASC Board in February 1998 and
became effective for financial statements covering periods
beginning on or after 1 January 1999.
In April 2000, Appendix C,
paragraph 7, was amended by IAS 40, investment property.
Introduction
1. This Standard ("IAS 34")
addresses interim financial reporting, a matter not covered in
a prior International Accounting Standard. IAS 34 is effective
for accounting periods beginning on or after 1 January 1999.
2. An interim financial report is
a financial report that contains either a complete or
condensed set of financial statements for a period shorter
than an enterprise's full financial year.
3. This Standard does not mandate
which enterprises should publish interim financial reports,
how frequently, or how soon after the end of an interim period.
In IASC's judgement, those matters should be decided by
national governments, securities regulators, stock exchanges,
and accountancy bodies. This Standard applies if a company is
required or elects to publish an interim financial report in
accordance with International Accounting Standards.
4. This Standard:
(a) defines the minimum content
of an interim financial report, including disclosures; and
(b) identifies the accounting
recognition and measurement principles that should be applied
in an interim financial report.
5. Minimum content of an interim
financial report is a condensed balance sheet, condensed
income statement, condensed cash flow statement, condensed
statement showing changes in equity, and selected explanatory
notes.
6. On the presumption that anyone
who reads an enterprise's interim report will also have access
to its most recent annual report, virtually none of the notes
to the annual financial statements are repeated or updated in
the interim report. Instead, the interim notes include
primarily an explanation of the events and changes that are
significant to an understanding of the changes in financial
position and performance of the enterprise since the last
annual reporting date.
7. An enterprise should apply the
same accounting policies in its interim financial report as
are applied in its annual financial 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. The frequency of an
enterprise's reporting - annual, half-yearly, or quarterly -
should not affect the measurement of its annual results. To
achieve that objective, measurements for interim reporting
purposes are made on a year-to-date basis.
8. An appendix to this Standard
provides guidance for applying the basic recognition and
measurement principles at interim dates to various types of
asset, liability, income, and expense. Income tax expense for
an interim period is based on an estimated average annual
effective income tax rate, consistent with the annual
assessment of taxes.
9. In deciding how to recognise,
classify, or disclose an item for interim financial reporting
purposes, materiality is to be assessed in relation to the
interim period financial data, not forecasted annual data.
The standards, which have been
set in bold italic type, should be read in the context of the
background material and implementation guidance in this
Standard, and in the context of the "Preface to International
Accounting Standards". International Accounting Standards are
not intended to apply to immaterial items (see paragraph 12 of
the Preface).
Previous |
Index |
Next
|
