Ind As 34

Ind As 34- Interim Financial Statement

Presentation of item in financial statement is described in three different Ind AS standards, Known as:

Ind As 1 (As-1): Presentation of general purpose Financial statement

Ind As 34 (AS 25): Interim Financial statement

Ind As 7 (AS 3): Cash Flow statement

Here we will discuss about the Ind As 34 which is mostly similar to AS 25 which describes about Interim Financial Statement.

Meaning of Interim Report:

Interim report is the reporting of the financial Information for less than 12 months.

Important Note: First account may be of less than 12 months but can’t be classified as interim report.

According to Ind As- 34 Interim Financial statements includes:

1.      Balance sheet

2.      Profit and loss account

. Comprehensive Income

.Other comprehensive Income

3.      Cash flow statement

4.      Statement of changes in equity

5.      Notes to account

Interim financial reporting can be reported in two forms:

·      Complete set: Interim financial reporting same as annual financial statement

·      Condensed Set: Summarized Balance sheet, P&L account , cash flow account , statement of changes in equity

·      Summarized notes to account

Note: In general company follows condensed set because of time saving and cost saving.

It means all the line items and sub line items in the balance sheet, P&L account, Cash flow statement and the complete statement of changes in equity will be reported. Only the notes part will be presented in summarized form.

A summarized note contains:

A)    Accounting policy:

·      A description that accounting policy followed is same as followed in previous annual financial statement.

·      If any policy is changed than description of such change and impact on financial statement shall be disclosed.

B)     Seasonal Variability:

·      Seasonal variation in product must be disclosed.

C)    Disclosure of following item:

·      Profit or loss on disposal of fixed asset and long term investments.

·      Settlement of court assets

·      Valuation of inventory at NRV

·      Restructuring of activities

·      Other reversal of provisions

D)    Impairment of assets and revenues of impairment except goodwill:

·      Under AS 25 reversal of impairment of goodwill shall also be disclosed

E)     Contingent asset and contingent liability must be disclosed

F)     Disclosure of payment of dividend, changes in capital structure (issue and buyback/repayment of ESC, PSC, debt, loan)  

G)    Amalgamation or other reconstruction business combination must be disclosed.

H)   Other required disclosure