IAS 34 interim financial reporting

Who must prepare an interim report under IAS 34?

IAS 34 applies when a company publishes an interim financial report that states compliance with IFRS, or is required to apply it by a regulator. Whether to publish, how often and how soon are decided by securities regulators, stock exchanges and governments, though IAS 34 encourages listed companies to report at least for the first half of the year, within 60 days. A company can still produce full IFRS statements for an interim period instead of condensed ones, applying IFRS 18 in full.

What must an interim report contain?

• A condensed statement of financial position.
• A condensed statement, or statements, of profit or loss and other comprehensive income, with basic and diluted earnings per share if the company is within IAS 33. See IAS 33 earnings per share.
• A condensed statement of changes in equity.
• A condensed statement of cash flows.
• Selected explanatory notes.

Condensed statements must include at least each heading and subtotal used in the latest annual statements, plus extra lines whose omission would make them misleading.

Which periods does an interim report present?

For a half-year report at 30 June 2027 under IAS 34, a company presents the statement of financial position at 30 June 2027 and at 31 December 2026; profit or loss and other comprehensive income for the six months to 30 June 2027 and 2026; and changes in equity and cash flows for the same year-to-date periods. A quarterly reporter's second-quarter report adds profit or loss for the three months to 30 June of both years.

How are interim amounts measured?

• Same policies as the latest annual statements, or those that will apply in the next annual statements if a change has been made.
• Year-to-date basis: measurements in a later quarter revise those of earlier quarters, without restating them, so the annual figure is the same however often the company reports.
• Seasonal or occasional revenue, such as dividends or seasonal sales, is not anticipated or deferred; nor are costs incurred unevenly, unless that would be appropriate at the year end.
• Estimates may be used more than at the year end, and materiality is judged against the interim figures.
• Goodwill impairment recognised in an interim period is never reversed, under IFRIC 10, even though it would not have arisen had the test been done only at the year end. See goodwill impairment under IAS 36.

IAS 34 in practice: income tax at the estimated annual effective rate

A company expects profit before tax of CU 4,000 thousand for the year. Tax is 20% on the first CU 2,000 thousand of annual profit and 30% above that, so the annual charge is CU 1,000 thousand and the estimated annual effective tax rate is 25%. All figures are in CU thousand.

IAS 34 requires the first column: the tax charge in each quarter is that quarter's profit times the 25% rate expected for the whole year, because income tax is assessed on annual profit. Taxing each quarter's cumulative profit through the bands would charge only 200 in the first quarter, when profit had not yet reached the higher band, and load the higher rate onto later quarters. If the annual estimate changes, the year-to-date charge is trued up in the quarter of the change. See IAS 12 income taxes.

What do the explanatory notes cover?

Events and transactions significant to understanding the changes since the last annual report, rather than a repeat of it: for example inventory write-downs, impairment losses and reversals, large purchases and sales of property, litigation settlements, corrections of errors, defaults on borrowings, related party transactions, transfers between fair value hierarchy levels, and changes in the composition of the group. The notes also cover seasonality, unusual items, changes in estimates, debt and equity issues, dividends paid, segment information, events after the interim period, fair value disclosures for financial instruments and disaggregated revenue. See IAS 10 events after the reporting period.

How does IFRS 18 change interim reports from 2027?

In the first year of IFRS 18, condensed interim statements cannot simply repeat the headings of the latest annual statements, which were prepared under IAS 1. Instead, a company presents each heading it expects to use under IFRS 18, with the new required subtotals, and reconciles each line of the comparative interim income statement from the amounts previously reported to the restated ones. From then on, IAS 34 as amended by IFRS 18 requires the management-defined performance measure disclosures in every interim report, though information already given in the latest annual report need not be repeated. See IFRS 18 transition and comparatives and management-defined performance measures.

How does IAS 34 compare with ASC 270?

IAS 34 treats each interim period mostly as a discrete period, measured year to date, while US GAAP's ASC 270 treats it as an integral part of the annual period, which allows some costs to be allocated across quarters. Both use an estimated annual effective tax rate. ASU 2025-11, issued in December 2025, clarifies ASC 270: it lists the required interim disclosures in one place and adds a principle to disclose events since the last annual period that have a material effect. It applies to public business entities for interim periods within annual periods beginning after 15 December 2027, and a year later for others. See IFRS vs US GAAP key differences.

This guide is general information. It is not tax or legal advice for your situation.