AS-25 – Interim Financial Reporting :
An interim financial report means a financial report containing either a complete set of financial statements or a set of condensed financial statements for an interim period.
An interim financial report should include, at a minimum, the following components:
(i) Condensed balance sheet;
(ii) Condensed statement of profit and loss;
(iii) Condensed cash flow statement; and
(iv) Selected explanatory notes.
An enterprise should apply the same accounting policies in the interim financial statements as are applied in the annual financial statements. If an enterprise opts to prepare and present a complete set of financial statements in the interim financial reporting, it should be prepared in the format and as per the contents and requirements of annual financial statements.
The following minimum disclosure of notes and explanatory statements should be made in the interim financial report.
(i) A statement that the same accounting policies are followed in the interim financial statements as those followed in the most recent annual financial statements or, if those policies have been changed, a description of the nature and effect of the change.
(ii) Explanatory comments about the seasonality of interim operations.
(iii) Unusual factors that affected assets, liabilities, equity, net income and cash flows.
(iv) The effects of changes in estimates.
(v) Change in debt and equity through issuance, buy-back and repayments.
(vi) Details of dividend payment.
(vii) Segment revenue, segment capital employed and segment result for business segments or geographical segments, whichever is the primary basis of segment reporting.
(viii) The effect of changes in the composition of the enterprise during the interim period, such as amalgamations, acquisition or disposal of subsidiaries and long-term investments, restructurings, and discontinuing operations.
(ix) Material changes in contingent liabilities since the last annual balance sheet date. Interim reports should include interim financial statements for the following periods:
(a) Balance sheet as of the current interim period and a comparative balance sheet as of the end of the immediately preceding financial year;
(b) Statements of profit and loss for the current interim period and cumulatively for the current financial year to date, with comparative statements of profit and loss for the comparable interim periods (current and year-to-date) of the immediately preceding financial year;
(c) 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.
In deciding how to recognize, measure, classify, or disclose an item for interim financial reporting purposes, materiality should be assessed in relation to the interim period financial data. In making assessments of materiality, it should be recognized that interim measurements may rely on estimates to a greater extent than measurements of annual financial data
An enterprise should apply the same accounting policies in its interim financial statements as are applied in its 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. However, the frequency of an enterprise’s reporting (annual, half-yearly, or quarterly) should not affect the measurement of its annual results. To achieve that objective, measurements for interim reporting purposes should be made on a year-todate basis.
Revenues that are received seasonally or occasionally within a financial year should not be anticipated or deferred as of an interim date if anticipation or deferral would not be appropriate at the end of the enterprise’s financial year. However costs that are incurred unevenly during an enterprise’s 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.