FRS 134-INTERIM FINANCIAL REPORTING(Part 1/2)

January 24th, 2010 / No comments yet

FRS 134: INTERIM FINANCIAL REPORTING

This FRS does not mandate which entities should publish interim financial reports, how frequently or how soon after the end of an interim period

FRS 134 defines interim period as a financial period that is shorter than a full financial period
An interim financial report can contains either a complete or condensed set of financial statements for the interim period
If an entity’s interim financial statements are in compliance with FRS, that fact should be stated.
Entities can either present (a) complete set of financial statements, or (b) condensed financial statements
For complete set of financial statements, they should comply with the requirements of FRS 101
Other factors to considered in preparing interim financial statements are materiality, recognition and measurement, accounting policies and seasonal, cyclical or occasional revenue and costs.
Interim financial reports can generally be half-yearly or quarterly. The report cover the current period year-to-date and comparatives

The minimum components of a condensed financial statement comprise the following:

Condensed balance sheet
Condensed income statement
Condensed statement of changes in equity or changes in equity
Condensed cash flow statements
Selected explanatory notes

As a minimum, the condensed financial statements should include:

Each of the headings and sub-totals included in its most recent annual financial statemets
Selected explanatory notes as required by the standard
Basic and diluted earnings per share on the face of the income statement

Additional line items or notes are included if they are significant in the overall context of the entity. If not included, the condensed financial statement report will be misleading.

The following are some of the items to be disclosed:

Statement of accounting policy changes
Explanatory comments about seasonality or cyclicality of interim operations
Exceptional items
Change in estimates
Issuances, cancellations, repurchases, resale and repayments of debt and equity securities
Dividend paid(aggregate or per share) separately for ordinary shares and other shares
Segment revenue and segment result
Material events subsequent to the end of the interim period
Changes in structure of the entity, including business combinations
Changes in contingent liabilities or contingent assets since the last annual balance sheet date