1、 Interim Financial Reporting FRS 34 Interim Financial Reporting was issued by the CCDG in January 2003 and consequential amendments were made in July and September 2004. This Standard is operative for financial statements covering periods beginning on or after 1st October 2001. FRS 34 FINANCIAL REPO
2、RTING STANDARDContents OBJECTIVE SCOPE Paragraphs 1 - 3 DEFINITIONS 4 CONTENT OF AN INTERIM FINANCIAL REPORT 5 25 Minimum Components of an Interim Financial Report 8 Form and Content of Interim Financial Statements 9 14 Selected Explanatory Notes 15 18 Disclosure of Compliance with FRS 19 Periods fo
3、r which Interim Financial Statements are Required to be Presented 20 22 Materiality 23 25 DISCLOSURE IN ANNUAL FINANCIAL STATEMENTS 26 27 RECOGNITION AND MEASUREMENT 28 42 Same Accounting Policies as Annual 28 36 Revenues Received Seasonally, Cyclically, or Occasionally 37 38 Costs Incurred Unevenly
4、 during the Financial Year 39 Applying the Recognition and Measurement Principles 40 Use of Estimates 41 42 RESTATEMENT OF PREVIOUSLY REPORTED INTERIM PERIODS 43 45 EFFECTIVE DATE 46 APPENDICES A. Illustration of Periods Required to Be Presented B. Examples of Applying the Recognition and Measuremen
5、t Principles C. Examples of the Use of Estimates Financial Reporting Standard 34 Interim Financial Reporting (FRS 34) is set out in paragraphs 1-46. All the paragraphs have equal authority. FRS 34 should be read in the context of its objective, the Preface to the Financial Reporting Standards and th
6、e Framework for the Preparation and Presentation of Financial Statements. FRS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. 1 FINANCIAL REPORTING STANDARD FRS 34 Interim Financial
7、 Reporting Objective 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 conde nsed financial statements for an interim period. Timely and reliable interim financial reporting
8、 improves the ability of investors, creditors, and others to understand an enterprises capacity to generate earnings and cash flows and its financial condition and liquidity. Scope 1. This Standard does not mandate which enterprises should be required to publish interim financial reports, how freque
9、ntly, or how soon after the end of an interim period. However, governments, securities regulators, stock exchanges, and accountancy bodies often require enterprises whose debt or equity securities are publicly traded to publish interim financial reports. This Standard applies if an enterprise is req
10、uired or elects to publish an interim financial report in accordanc e with Financial Reporting Standards. The Council on Corporate Disclosure and Governance encourages publicly traded enterprises to provide interim financial reports that conform to the recognition, measurement, and disclosure princi
11、ples set out in this Standard. Specifically, publicly traded enterprises are encouraged: (a) to provide interim financial reports at least as of the end of the first half of their financial year; and (b) to make their interim financial reports available not later than 60 days after the end of the in
12、terim period. 2. Each financial report, annual or interim, is evaluated on its own for conformity to Financial Reporting Standards. The fact that an enterprise may not have provided interim financial reports during a particular financial year or may have provided interim financial reports that do no
13、t comply with this Standard does not prevent the enterprises annual financial statements from conforming to Financial Reporting Standards if they otherwise do so. 3. If an enterprises interim financial report is described as complying with Financial Reporting Standards, it must comply with all of th
14、e requirements of this Standard. Paragraph 19 requires certain disclosures in that regard. Definitions 4. The following terms are used in this Standard with the meanings specified: Interim period is a financial reporting period shorter than a full financial year. Interim financial report means a fin
15、ancial report containing either a complete set of financial statements (as described in FRS 1, Presentation of Financial Statements) or a set of condensed financial statements (as described in this Standard) for an interim period. 2 Content of an Interim Financial Report 5. FRS 1 defines a complete
16、set of financial statements as including the following components: (a) a balance sheet; (b) an income statement; (c) a statement of changes in equity showing either: (i) all changes in equity or (ii) changes in equity other than those arising from transactions with equity holders acting in their cap
17、acity as equity holders; (d) a cash flow statement; and (e) notes, comprising a summary of significant accounting policies and other explanatory notes. 6. In the interest of timeliness and cost considerations and to avoid repetition of information previously reported, an enterprise may be required t
18、o or may elect to provide less information at interim dates as compared with its annual financial statements. This Standard defines the minimum content of an interim financial report as including condensed fi nancial statements and selected explanatory notes. The interim financial report is intended
19、 to provide an update on the latest complete set of annual financial statements. Accordingly, it focuses on new activities, events, and circumstances and does not duplicate information previously reported. 7. Nothing in this Standard is intended to prohibit or discourage an enterprise from publishin
20、g a complete set of financial statements (as described in FRS 1) in its interim financial report, rather than condensed financial statements and selected explanatory notes. Nor does this Standard prohibit or discourage an enterprise from including in condensed interim financial statements more than
21、the minimum line items or selected explanatory notes as set out in this S tandard. The recognition and measurement guidance in this Standard applies also to complete financial statements for an interim period, and such statements would include all of the disclosures required by this Standard (partic
22、ularly the selected note disclosures in paragraph 16) as well as those required by other Financial Reporting Standards. Minimum Components of an Interim Financial Report 8. An interim financial report should include, at a minimum, the following components: (a) condensed balance sheet; (b) condensed
23、income statement; (c) condensed statement showing either (i) all changes in equity or (ii) changes in equity other than those arising from capital transactions with owners and distributions to owners; (d) condensed cash flow statement; and (e) selected explanatory notes. Form and Content of Interim
24、Financial Statements 9. If an enterprise publishes a complete set of financial statements in its interim financial report, the form and content of those statements should conform to the requirements of FRS 1 for a complete set of financial statements. 3 10. If an enterprise publishes a set of conden
25、sed financial statements in its interim financial report, those condensed statements should include, at a minimum, each of the headings and subtotals that were included in its most recent annual financial statements and the selected explanatory notes as required by this Standard. Additional line ite
26、ms or notes should be included if their omission would make the condensed interim financial statements misleading. 11. Basic and diluted earnings per share should be presented on the face of an income statement, complete or condensed, for an interim period. 12. FRS 1 provides guidance on the structu
27、re of financial statements. The Implementation Guidance for FRS 1 illustrates ways in which the balance sheet, income statement and statement of changes in equity may be presented. 13. FRS 1 requires a statement of changes in equity to be presented as a separate component of an entitys financial sta
28、tements, and permits information about changes in equity arising from transactions with equity holders acting in their capacity as equity holders (including distributions to equity holders) to be shown either on the face of the statement or in the notes. An entity follows the same format in its inte
29、rim statement of changes in equity as it did in its most recent annual statement. 14. An interim financial report is prepared on a consolidated basis if the enterprises most recent annual financial statements were consolidated statements. The parents separate financial statements are not consistent
30、or comparable with the consolidated statements in the most recent annual financial report. If an enterprises annual financial report included the parents separate financial statements in addition to consolidated financial statements, this Standard neither requires nor prohibits the inclusion of the
31、parents separate statements in the enterprises interim financial report. Selected Explanatory Notes 15. A user of an enterprises interim financial report will also have access to the most recent annual financial report of that enterprise. It is unnecessary, therefore, for the notes to an interim fin
32、ancial report to provide relatively insignificant updates to the information that was already reported in the notes in the most recent annual report. At an interim date, an explanation of events and transactions that are significant to an understanding of the changes in financial position and perfor
33、mance of the enterprise since the last annual reporting date is more useful. 16. An enterprise should include the following information, as a minimum, in the notes to its interim financial statements, if material and if not disclosed elsewhere in the interim financial report. The information should
34、normally be reported on a financial year -to-date basis. However, the enterprise should also disclose any events or transactions that are material to an understanding of the current interim period: (a) a statement that the same accounting policies and methods of computation are followed in the inter
35、im financial statements as compared with the most recent annual financial statements or, if those policies or methods have been changed, a description of the nature and effect of the change; (b) explanatory comments about the seasonality or cyclicality of interim operations; (c) the nature and amoun
36、t of items affecting assets, liabilities, equity, net income, or cash flows that are unusual because of their nature, size, or incidence; (d) the nature and amount of changes in estimates of amounts reported in prior interim periods of the current financial year or changes in estimates of amounts re
37、ported 4 in prior financial years, if those changes have a material effect in the current interim period; (e) issuances, repurchases, and repayments of debt and equity securities; (f) dividends paid (aggregate or per share) separately for ordinary shares and other shares; (g) segment revenue and seg
38、ment result for business segments or geographical segments, whichever is the enterprises primary basis of segment reporting (disclosure of segment data is required in an enterprises interim financial report only if FRS 14 Segment Reporting requires that enterprise to disclose segment data in its ann
39、ual financial statements); (h) material events subsequent to the end of the interim period that have not been reflected in the financial statements for the interim period; (i) the effect of changes in the composition of the entity during the interim period, including business combinations, acquisiti
40、on or disposal of subsidiaries and long-term investments, restructurings, and discontinued operations. In the case of business combinations, the entity shall disclose the information required to be disclosed under paragraphs 66-73 of FRS 103 Business Combinations; and (j) changes in contingent liabi
41、lities or contingent assets since the last annual balance sheet date. 17. Examples of the kinds of disclosures that are required by paragraph 16 are set out below. Individual Standards and Interpretations provide guidance regarding disclosures for many of these items: (a) the write-down of inventori
42、es to net realisable value and the reversal of such a write-down; (b) recognition of a loss from the impairment of property, plant, and eq uipment, intangible assets, or other assets, and the reversal of such an impairment loss; (c) the reversal of any provisions for the costs of restructuring; (d)
43、acquisitions and disposals of items of property, plant, and equipment; (e) commitments for the purchase of property, plant, and equipment; (f) litigation settlements; (g) corrections of prior period errors; (h) deleted; (i) any loan default or breach of a loan agreement that has not been remedied on
44、 or before the balance sheet date; and (j) related party transactions. 18. Other Standards specify disclosures that should be made in financial statements. In that context, financial statements means complete sets of financial statements of the type normally included in an annual financial report an
45、d sometimes included in other reports. Except as required by paragraph 16(i), the disclosures required by those other Standards are not required if an entitys interim financial report includes only condensed financial statements and selected explanatory notes rather than a complete set of financial
46、statements. 5 Disclosure of Compliance with FRS 19. If an enterprises interim financial report is in compliance with this Financial Reporting Standard, that fact should be disclosed. An interim financial report should not be described as complying with Financial Reporting Standards unless it complie
47、s with all of the requirements of each applicable Standard and each applicable Interpretation of the Financial Reporting Standard. Periods for which Interim Financial Statements are Required to be Presented 20. Interim reports should include interim financial statements (condensed or complete) for p
48、eriods as follows: (a) balance sheet as of the end of the current interim period and a comparative balance sheet as of the end of the immediately preceding financial year; (b) income statements for the current interim period and cumulatively for the current financial year to date, with comparative i
49、ncome statements for the comparable interim periods (current and year-to-date) of the immediately preceding financial year; (c) statement showing changes in equity cumulatively for the current financial year to date, with a comparative statement for the comparable year -to-date period of the immediately preceding financial year; and (d) cash flow statement cumulatively for the current financial year to date, with a comparative statement for the comparable year-to-date period of the immediately preceding financial year. 21
