Ind as 34

a brief description of Ind AS 34

2. FINANCIAL REPORTING
FinancialReporting isthedisclosureoffinancialresultsandrelated
informationtomanagementandexternalstakeholdersabouthowacompanyis
performingoveraspecificperiodoftime.
Itisalargecollectivedocumentthatsummarizesthefinancialearningand
spendingofagivenbusinessoveraspecifiedperiodoftimeingreatdetailsthat
haveeffectofcompanyfinancialpositionandperformance.
Onthebasisofperiodoftime,ithasbeenclassifiedintotwocategories-
AnnualFinancialReporting
InterimfinancialReporting

3. ANNUAL FINANCIAL REPORTING
AnnualFinancialReport meansafinancialreportcontainingacompletesetof
financialstatements(asdescribedinIndAS1,PresentationofFinancialStatements)
forafinancialyear.
FinancialYear[Sec.2(41)ofthecompaniesAct,2013]inrelationtoanycompanyor
bodycorporate,means
theperiodendingonthe31stdayofMarcheveryyear,
whereithasbeenincorporatedonorafterthe1stdayofJanuaryofayear ,
theperiodendingonthe31stdayofMarchofthefollowingyear,
whereacompanyorbodycorporate,whichisaholdingcompanyorasubsidiaryor
associatecompanyofacompany incorporatedoutsideIndia andisrequiredto
followadifferentfinancialyearforconsolidationofitsaccountsoutsideIndia,the
CentralGovernmentmay,onanapplicationmadebythatcompanyorbodycorporate
insuchformandmannerasmaybeprescribed,allowanyperiodasitsfinancialyear,
whetherornotthatperiodisayear.

4. INTERIMFINANCIAL REPORTING
Interimfinancialreport meansafinancialreportcontainingeithera
completesetoffinancialstatements (asdescribedinIndAS1,Presentation
ofFinancialStatements,orasetofcondensedfinancialstatements (as
describedinthisStandard)foraninterimperiod.
Interimperiodisafinancialreportingperiodshorterthanafullfinancial
year.
ExceptionforInterimFinancialReporting
Incorporation-companyhasbeenincorporatedonJan1,2019andtheperiod
endingon31
st
March,2020.FinancialReporti.e.AnnualFinancialReportof
thecompanyismadeupof3months(afinancialyearforthecompany).
LiquidationinthemidofFinancialyear.Companypreparesfinancialreportas
itslastannualfinancialreport.
IncorporatedoutsideIndia(describesinthedefinitionoffinancialYear)etc.

5. OBJECTIVES OF-
InterimFinancialReporting
Timelyandreliableinterimfinancialreportingimprovestheabilityof
investors,creditors,andotherstounderstandanentity’scapacitytogenerate
earningsandcashflowsanditsfinancialconditionandliquidity.
TheinformationshallnormallybereportedonaFinancialyear-to-datebasis.
IndAS34
Toprescribetheminimumcontentofaninterimfinancialreportand
toprescribetheprinciplesforrecognitionandmeasurementincompleteor
condensedfinancialstatementsforaninterimperiod.

6. COMPONENTS OF COMPLETE SET OF FINANCIAL
STATEMENTS
Acompletesetoffinancialstatements comprises:
a.abalancesheetasattheendoftheperiod;
b.astatementofprofitandlossfortheperiod;
c.Statementofchangesinequityfortheperiod;
d.astatementofcashflowsfortheperiod;
e.notes,comprisingsignificantaccountingpoliciesandotherexplanatory
information;
ea.comparativeinformationinrespectoftheprecedingperiod;and
f.abalancesheetasatthebeginningoftheprecedingperiodwhenan
entityappliesanaccountingpolicyretrospectivelyormakesaretrospective
restatementofitemsinitsfinancialstatements,orwhenitreclassifiesitems
initsfinancialstatements.

7. COMPONENTS OF A SET OF CONDENSED
FINANCIAL STATEMENTS
Aninterimfinancialreportshallinclude,ataminimum,thefollowing
components:
a.acondensedbalancesheet;
b.acondensedstatementofprofitandloss;
c.acondensedstatementofchangesinequity;
d.acondensedstatementofcashflows;and
e.selectedexplanatorynotes.

8. PRESENTATION AND DISCLOSURES OF
INTERIM FINANCIAL REPORT
Source: https://resource.cdn.icai.org/56825bos46132cp2u2.pdf
Form and content of Interim financial report

9. PRESENTATION AND DISCLOSURES OF
INTERIM FINANCIAL REPORT
SignificantEvents and Transactions-
Tounderstandthechangesinfinancialpositionand performance
Anentityshallincludeinitsinterimfinancialreportanexplanationofevents
andtransactionsthataresignificanttoanunderstandingofthechanges in
financialpositionandperformanceoftheentitysincetheendofthelastannual
reportingperiod.
ToAccesstothemostrecentannualfinancialreport: Auserofan
entity’sinterimfinancialreportwillhaveaccesstothemostrecent annual
financialreportofthatentity.
Listofsignificanteventsandtransactions:

11. PRESENTATION AND DISCLOSURES OF
INTERIM FINANCIAL REPORT
Periodsforwhichinterimfinancialstatementsarerequiredtobepresented
Interimreportsshallincludeinterimfinancialstatements(condensedorcomplete)for
periodsasfollows:
a.balancesheetasoftheendofthecurrentinterimperiodandacomparativebalance
sheetasoftheendoftheimmediatelyprecedingfinancialyear.
b.statementsofprofitandlossforthecurrentinterimperiodandcumulativelyforthe
currentfinancialyeartodate,withcomparativestatementsofprofitandlossforthe
comparableinterimperiods(currentandyear-to-date)oftheimmediatelypreceding
financialyear.
c.statementofchangesinequitycumulativelyforthecurrentfinancialyeartodate,with
acomparativestatementforthecomparableyear-to-dateperiodoftheimmediately
precedingfinancialyear.
d.statementofcashflowscumulativelyforthecurrentfinancialyeartodate,witha
comparativestatementforthecomparableyear-to-dateperiodoftheimmediately
precedingfinancialyear
.

12. PRESENTATION AND DISCLOSURES OF
INTERIM FINANCIAL REPORT
Materiality:
Indecidinghowtorecognize,measure,classify,ordiscloseanitemforinterimfinancial
reportingpurposes,materialityshallbeassessedinrelationtotheinterimperiodfinancial
data.
Materialityconceptistheaccountingconceptthatconcernabouttherelevanceof
information,andthesizeandnatureoftransactionsthatreportinthefinancial
statements.
Thematerialityconceptisusedtodeterminewhat’simportantenoughtobeincludedin
andwhatcanbeomittedfromafinancialstatement.
Inmakingassessmentsofmateriality,itshallberecognizedthatinterimmeasurements
mayrelyonestimatestoagreaterextentthanmeasurementsofannualfinancialdata.
Judgementisalwaysrequiredinassessingmateriality,IndAS34basestherecognitionand
disclosuredecisionondatafortheinterimperiodbyitselfforreasonsofunderstandability
oftheinterimfigures.

13. RECOGNITION AND MEASUREMENT
SameAccountingPoliciesasAnnual
Financialstatementsasareappliedinitsannualfinancialstatements,
exceptforaccountingpolicychangesmadeafterthedateofthemostrecent
annualfinancialstatementsthataretobereflectedinthenextannual
financialstatements.
Achangeinaccountingpolicy,otherthanoneforwhichthetransitionis
specifiedbyanewIndAS,shallbereflectedbyrestatingthefinancial
statementsofpriorinterimperiodsofthecurrentfinancialyearandthe
comparableinterimperiodsofanypriorfinancialyearsthatwillberestated
intheannualfinancialstatementsinaccordancewithIndAS8
Thefrequencyofanentity’sreporting(annual,half-yearly,orquarterly)
shallnotaffectthemeasurementofitsannualresults.

14. RECOGNITION AND MEASUREMENT
SameAccountingPoliciesasAnnual
Year-to-datemeasurementsmayinvolvechangesinestimatesofamounts
reportedinpriorinterimperiodsofthecurrentfinancialyear.Butthe
principlesforrecognizingassets,liabilities,income,andexpensesfor
interimperiodsarethesameasinannualfinancialstatements.
Forexample-incometaxexpenseisrecognizedineachinterimperiod
basedonthebestestimateoftheweightedaverageannualincometaxrate
expectedforthefullfinancialyear.Amountsaccruedforincometax
expenseinoneinterimperiodmayhavetobeadjustedinasubsequent
interimperiodofthatfinancialyeariftheestimateoftheannualincometax
ratechanges.

15. RECOGNITION AND MEASUREMENT
Revenuesreceivedseasonally,cyclically,oroccasionally
Revenuesthatarereceivedseasonally,cyclically,oroccasionallywithina
financialyearshallnotbeanticipatedordeferredasofaninterimdateif
anticipationordeferralwouldnotbeappropriateattheendoftheentity’s
financialyear.
Suchrevenuesarerecognizedwhentheyoccur.
Examplesincludedividendrevenue,royalties,andgovernmentgrants,
seasonalrevenuesofretailers.

16. RECOGNITION AND MEASUREMENT
Costsincurredunevenlyduringthefinancialyear
Coststhatareincurredunevenlyduringanentity’sfinancialyearshallbe
anticipatedordeferredforinterimreportingpurposesif,andonlyif,itis
alsoappropriatetoanticipateordeferthattypeofcostattheendofthe
financialyear.

17. RECOGNITION AND MEASUREMENT
Useofestimates
Themeasurementprocedurestobefollowedinaninterimfinancialreport
shallbedesignedtoensurethattheresultinginformationisreliableand
thatallmaterialfinancialinformationthatisrelevanttoanunderstanding
ofthefinancialpositionorperformanceoftheentityisappropriately
disclosed.
Measurementsinbothannualandinterimfinancialreportsareoftenbased
onreasonableestimates,thepreparationofinterimfinancialreports
generallywillrequireagreateruseofestimationmethodsthanannual
financialreports.