Interım fınancıal reportıng IAS 34 Interım fınancıal reportıng

CONTENT Interim Financial Report Contents of an I.F.R History Objective Scope Goal of I.F.R Measurement and Principles for recognition and measurement Materiality Accounting Policies Disclosure

Interim Financial Reporting Public Financial Report Short-term Statement A public financial report covering a period of less than one year. An interim statement is used to convey the performance of a company before the end of the year. Unlike annual statements, interim statements do not have to be audited. Interim statements increase communication between companies and the public, and provide investors with up-to-date information between annual reporting periods.

Interim Report Interim period: a financial reporting period shorter than a full financial year (most typically a quarter or half-year). Interim financial report: a financial report that contains either a complete or condensed set of financial statements for an interim period.

Contents of an Interim Financial Statement Condensed balance sheet Condensed income statement Condensed statement of changes in equity Condensed cash flow statement Selected explanatory notes

History of IAS 34 Date Development Comments August 1997 Exposure Draft E57 Interim Financial Reporting published June 1999 IAS 34 Interim Financial Reporting issued Operative for financial statements covering periods beginning on or after 1 January 1999 6 May 2010 Amended by Improvements to IFRSs 2010 (significant transactions and events) Effective for annual periods beginning on or after 1 January 2011 17 May 2012 Amended by Annual Improvements 2009-2011 Cycle (segment information) Effective for annual periods beginning on or after 1 January 2013 25 September 2014 Amended by Improvements to IFRSs 2014 (disclosure of information 'elsewhere in the interim financial report') Effective for annual periods beginning on or after 1 January 2016

Objective Minimum contents of interim report Recognition and measurement principles The objective of this Standard is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in complete or condensed financial statements for an interim period. Timely and reliable interim financial reporting improves the ability of investors, creditors, and others to understand an entity’s capacity to generate earnings and cash flows and its financial condition and liquidity.

Scope Standard does not address how often nor how soon after the period entities should produce interim reports Choice by the entity May choose not to prepare interim financial statements at all May choose to prepare them in accordance with IFRSs if they do and they describe the financial statements to be in compliance with IFRSs, the standard applies

Scope Cont’d Interim reporting Reports provide more relevant and timely information Often mandated by securities regulators, governments, and stock exchanges IASB encourages entities whose shares are publicly traded to provide interim information At least as of the end of the first half of the year and issue it within 60 days of this date

Goal of interim reporting To provide information about new events and circumstances and other changes Not just replicate the information given in the annual financial statements

Measurement Revenues that are received seasonally, cyclically or occasionally within a financial year should not be anticipated or deferred as of the interim date. Costs that are incurred unevenly during a financial year should be anticipated or deferred for interim reporting purposes if, and only if, it is also appropriate to anticipate or defer that type of cost at the end of the financial year. Income tax expense should be recognised based on the best estimate of the weighted average annual effective income tax rate expected for the full financial year.

Principles for recognition and measurement Same as in annual financial statements no smoothing of income and expenses recognition of assets, liabilities, income and expenses in accordance with the Framework and applicable Standards measurement on a year-to-date basis frequency of reporting should not affect measurement of annual results

greater use of estimates Materiality greater use of estimates less materiality In deciding how to recognise, measure, classify, or disclose an item for interim financial reporting purposes, materiality is to be assessed in relation to the interim period financial data, not forecast annual data.

Accounting Policies The same accounting policies should be applied. A key provision of IAS 34 is that an entity should use the same accounting policy throughout a single financial year. If a decision is made to change a policy mid-year, the change is implemented retrospectively, and previously reported interim data is restated. 1. applied for interim reporting as are applied in the entity's 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.

Disclosure Situations may arise where estimates are changed in the last quarter or final interim period Where final interim period statements are not separately presented and where the change is significant Nature and amount of change in estimate should be disclosed in the annual statements If an estimate of an amount reported in an interim period is changed significantly during the financial interim period in the financial year but a separate financial report is not published for that period, the nature and amount of that change must be disclosed in the notes to the annual financial statements.

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