Accounting Standard 25:
Interim Financial Reporting
· Interim financial reports (IFR) are financial statements (complete or condensed) for an interim period that is shorter than a full financial year.
· IFR should include at a minimum a condensed balance sheet, condensed profit and loss statement, cash flow and selected explanatory notes.
· IFR should include at least each of the heading and sub headings that were included in the most recent annual financial statements.
· Earnings per share if disclosed is to be calculated and presented as per AS 20.
· Notes to include at least
ü a statement on uniform accounting policies or any change therein.
ü explanatory comments about the seasonality of interim operations.
ü any unusual items (as per AS 5)
ü changes in estimates of amounts reported in prior interim periods/year, if material.
ü issuances, buy-backs repayments and restructuring of debt, equity and potential equity shares.
ü dividend for each class of equity shares.
ü segment reporting if required as per AS 17
ü any changes in composition of the enterprise.
ü material changes in contingent liabilities.
· Interim reports to include
ü Balance sheet as of the end of current interim period and a comparative balance sheet as of the end of the preceding financial year.
ü Statements of Profit & Loss for current interim period and cumulative for current financial year to date and comparative statements of the previous year (current and year to date)
ü Cash flow statement cumulatively for the current financial year to date with a comparative statement of previous year (year to date)
· Interim measurements may rely on estimates.
· For final interim period separate report not necessary as annual statements are presented.
· Uniform accounting policies to be applied in interim and annual financial statements.
· Seasonal/occasional revenues and uneven costs to be anticipated or deferred only if appropriate to do so at the end of the financial year.
· Estimates to be measured in such a way that resulting information is reliable and all material information disclosed.
· In case of change of accounting policies, other than one for which transition is specified by an accounting standard, figures of prior interim periods of current financial year to be restated.
Note: The presentation and disclosure requirements contained in AS 25 are not required to be applied in respect of ‘Interim financial results’ – example, the one presented under Clause 41 of the Listing Agreement, since they do not meet the definition of ‘interim financial report’. However, the recognition and measurement principles as per AS 25 should be applied. (ASI-27 Not incorporated in Notified AS).
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