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FRS 134

FRS 134. INTERIM FINANCIAL REPORTING. INTRODUCTION. EFFECTIVE PERIOD: 1/7/2007 supersedes FRS 134 2004 OBJECTIVE : For interim period, prescribe min content, principles for recog and measurement in complete & condensed f/s min disclosure

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FRS 134

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  1. FRS 134 INTERIM FINANCIAL REPORTING

  2. INTRODUCTION • EFFECTIVE PERIOD: 1/7/2007 supersedes FRS 134 2004 • OBJECTIVE: For interim period, prescribe • min content, • principles for recog and measurement in complete & condensed f/s • min disclosure i.e. Condensed Bal sheet, P&L, C/Flow, Stat Changes in Eq., selected explanatory notes i.e. Explanation of events and changes sigf. to understdg changes in finl position & performance of entity since last annual reportg date

  3. Continue Aim: Timely and reliable interim finl reportg improves the ability of investors, creditors and others to understand an entity’s capacity to generate earnings and c/flows and its finl cond. and liquidity

  4. Scope • Para 1 PLC encouraged: • Provide interim finl report at least end of 1st half of finl yr ; and • Make interim finl report available x later 60 days after end of the interim period

  5. Definition Para 4: Interim Financial Report ~ Finl report for an interim periodcontaining either (a) a complete set of f/s (as described by FRS 101), OR (b)a set of condensed f/s (FRS 134)

  6. Complete Set of F/S • Para 5 (based on FRS 101) • Bal Sheet • Income Stat • Stat of Changes in Eq • C/Flow Stat • Notes, comprisg summary of sig actg policies and explanatory notes

  7. Para 6 • In considerat of timeliness, cost, redundancy: Entity may be required/ elect to provide < info at interim date – focus to provide update on latest annual f/s, i.e. new activities, events, circumstances

  8. Min. Components of Interm Finl Report(Para 8) • Condensed bal sheet • Condensed income stat • Condensed Stat of Changes of Equity • Condensed C/Flow Stat • Selected Explanatory Notes

  9. Form and content of interim f/s • Para 9: Entity publishes a complete set f/s in interim finl report….the form and content shall conform to req of FRS 101 • Para 10: Entity publishes a set of condensed f/s in interim finl report…….include at a minimum…each of the headings and subtotals included in recent annual f/s…Additional line item included if exclusion make this report misleading Refer further Para 11-13

  10. Selected Explanatory Notes • Para 16: To include following info as a min (reported on finl year-to-date basis), e.g : • Stat that same actg policies and method of computation applied • Nature and amt of items affecting A, L, E, Net Income or c/flw • Effect of changes in composition of entity

  11. Para 17: Eg of disclosure • Write down of inventories to NRV and reversal of such write down • Recog. of loss from impairment of PPE • Acquisitn and disposal of PPE Read further Para 18

  12. Para 20: Periods for which interim finl stat are required to be presented • Interim reports shall include interim f/s for period as follows: • B/sheet as of the end of the current interim period and comparative bal sheet as of the end of the immediately preceding finl yr E.g. : Year end 31 Dec Current Interim Period (half-yearly interim) Bal Sheet At 30 June31 Dec (Comparative)

  13. Continue… (b) Income Stat for the current interim period and cumulatively for the current finl. yr to date, with comparative income stat for the comparable interim periods (current and year-to- date) of the immediately preceding finl yr. E.g: Finl y/r 31 Dec Interim Half Yearly Income stat 30 Junex2 30 June x1 (Comparative)

  14. Continue… (c) Stat Changes of Equity cumulatively for the current finl yr to date, with comparative stat for the comparable yr to date period of the immediately preceding finl yr Interim Half Yearly Stat of Changes in Equity 30 June 2001 30 June 2000 (d) C/Flow stat cumulatively for the current finl yr to date, with comparative statement for the comparable year-to-date period of the immediately preceding finl yr Interim Half Yearly Cash Flow Stat 30 June 2001 30 June 2000

  15. Materiality • Para 23: Recog, Measurement, Classification or Disclosure of an item for interim finl report shall be based on materiality….Interim measurements may rely on estimates than measurements of annual finl data • Para 24: Materiality based on FRS 108 …omission of misstatement could influence the economic decisions of users of finl stat…FRS 101 separate disclosure of material items

  16. Continue… • Para 25: FRS 134 bases recog & disclosure dec on data for interim period for reasons of understandability of the interim figures…..Recog & disclosure based on materiality of interim period data to avoid misleading inferences from non-disclosure…..Goal is to include all relevant and reliable info (Para 41 and Appendix C) to aid understanding of entity’s finl position and performance during interim period

  17. Disclosure in Annual F/s • Para 26: If an estimate of an amt in an interim period is changed significantly during the final interim period but X separate fin report published for that interim period ….Nature, amt of that change in estimate shall be disclosed in a note to the annual finl stat for that finl yr

  18. Eg Recognition and Measurement Principles (Read: Para 28 – 42, Appendix B) • Major planned periodic maintenance and overhaul Cost of a planned major periodic maintenance or other seasonal expenditure expected to occur later in the yr x anticipated for interim reportg UNLESS past event Result entity to have legal or constructive oblig…..Mere intention or necessity to incur expenditure x sufficient for oblig to exist

  19. Restatement of Previously Reported Interim Periods (Para 43-45) • Para 43: Change in actg policy other than for which transition is specified by new Std or Interpretn, requires: • Restatement of fin stat of prior interim periods of the current finl yr (30 June 20x7) and the comparable interim period (30 June 20x6) of any prior finl yrs that will be restated in annual f/s • To apply prospectively the changes in actg policy when impracticable to make prior period adj

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