Page 2 of 5 FirstFirst 12345 LastLast
Results 11 to 20 of 41

Thread: 25 Accounting Standard 25 - Interim Financial Reporting - AS 25

  1. #11
    Accounting Standards
    Guest

    Default Disclosure in Annual Financial Statements of Accounting Standard (AS) 25 - Interim Financial Reporting

    Disclosure in Annual Financial Statements of Accounting Standard (AS) 25 - Interim Financial Reporting

    24. An enterprise may not prepare and present a separate financial report for the final interim period because the annual financial statements are presented. In such a case, paragraph 25 requires certain disclosures to be made in the annual financial statements for that financial year.


    25. If an estimate of an amount reported in an interim period is changed significantly during the final interim period of the financial year but a separate financial report is not prepared and presented for
    that final interim period, the nature and amount of that change in estimate should be disclosed in a note to the annual financial statements for that financial year.


    26. Accounting Standard (AS) 5, Net Profit or Loss for the Period, Prior Period Items and Changes in Accounting Policies, requires disclosure, in financial statements, of the nature and (if practicable) the amount of a change in an accounting estimate which has a material effect in the current
    period, or which is expected to have a material effect in subsequent periods. Paragraph 16(d) of this Statement requires similar disclosure in an interim financial report. Examples include changes in estimate in the final interim period relating to inventorywrite-downs, restructurings, or impairment losses that were reported in an earlier interim period of the financial year. The disclosure required by the preceding paragraph is consistent with AS 5 requirements and is intended to be restricted in scope so as to relate only to the change in estimates. An enterprise is not required to include additional interim period financial information in its annual financial statements.

  2. #12
    Accounting Standards
    Guest

    Default Recognition and Measurement Same Accounting Policies as Annual of Accounting Standard (AS) 25 - Interim Financial Reporting

    Recognition and Measurement Same Accounting Policies as Annual of Accounting Standard (AS) 25 - Interim Financial Reporting




    27. 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 yearto- date basis.


    28. Requiring that an enterprise apply the same accounting policies in its interim financial statements as in its annual financial statements may seem to suggest that interim period measurements are made as if each interim period stands alone as an independent reporting period. However, by providing that the frequency of an enterprise's reporting should not affect the measurement of its annual results, paragraph 27 acknowledges that an interim period is a part of a financial year. Year-to-date measurements may involve changes in estimates of amounts reported in prior interimperiods of the current financial year.But the principles for recognising assets, liabilities, income, and expenses for interimperiods are the same as in annual financial statements.


    29. To illustrate:

    (a) the principles for recognising and measuring losses from inventory write-downs, restructurings, or impairments in an interim period are the same as those that an enterprise would followif it prepared only annual financial statements.However, if such items are recognised and measured in one interim period and the estimate changes in a subsequent interim period of that financial year, the original estimate is changed in the subsequent interimperiod either by accrual of an additional amount of loss or by reversal of the previously recognised amount;

    (b) a cost that does not meet the definition of an asset at the end of an interim period is not deferred on the balance sheet date either to await future information as to whether it has met the definition of an asset or to smooth earnings over interim periods within a financial year; and

    (c) income tax expense is recognised in each interimperiod based on the best estimate of the weighted average annual income tax rate expected for the full financial year.Amounts accrued for income tax expense in one interim period may have to be adjusted in a subsequent interim period of that financial year if the estimate of the annual income tax rate changes.

    30. Under the Framework for the Preparation and Presentation of Financial Statements, recognition is the “process of incorporating in the balance sheet or statement of profit and loss an itemthatmeets the definition of an element and satisfies the criteria for recognition”. The definitions of assets, liabilities, income, and expenses are fundamental to recognition, both at annual and interim financial reporting dates.

    31. For assets, the same tests of future economic benefits apply at interim dates as they apply at the end of an enterprise's financial year. Costs that, by their nature, would not qualify as assets at financial year end would not qualify at interim dates as well. Similarly, a liability at an interim reporting date must represent an existing obligation at that date, just as it must at an annual reporting date.

    32. Income is recognised in the statement of profit and loss when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably. Expenses are recognised in the statement of profit and loss when a decrease in future economic benefits related to a decrease in an asset or an increase of a liability has arisen that can be measured reliably. The recognition of items in the balance sheet which do not meet the definition of assets or liabilities is not allowed.


    33. In measuring assets, liabilities, income, expenses, and cash flows reported in its financial statements, an enterprise that reports only annually is able to take into account information that becomes available throughout the financial year. Its measurements are, in effect, on a year-to-date basis.

    34. An enterprise that reports half-yearly, uses information available by mid-year or shortly thereafter in making the measurements in its financial statements for the first six-month period and information available by yearend or shortly thereafter for the twelve-month period. The twelve-month measurements will reflect any changes in estimates of amounts reported for the first six-month period. The amounts reported in the interim financial report for the first six-month period are not retrospectively adjusted.

    Paragraphs 16(d) and 25 require, however, that the nature and amount of any significant changes in estimates be disclosed.


    35. An enterprise that reports more frequently than half-yearly, measures income and expenses on a year-to-date basis for each interim period using information available when each set of financial statements is being prepared. Amounts of income and expenses reported in the current interim
    period will reflect any changes in estimates of amounts reported in prior interim periods of the financial year. The amounts reported in prior interim periods are not retrospectively adjusted. Paragraphs 16(d) and 25 require, however, that the nature and amount of any significant changes in estimates be disclosed.

  3. #13
    Accounting Standards
    Guest

    Default Revenues Received Seasonally or Occasionally of Accounting Standard (AS) 25 - Interim Financial Reporting

    Revenues Received Seasonally or Occasionally of Accounting Standard (AS) 25 - Interim Financial Reporting


    36. 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.


    37. Examples include dividend revenue, royalties, and government grants. Additionally, some enterprises consistently earn more revenues in certain interimperiods of a financial year than in other interimperiods, for example, seasonal revenues of retailers. Such revenues are recognised when they
    occur.

  4. #14
    Accounting Standards
    Guest

    Default Costs Incurred Unevenly During the Financial Year of Accounting Standard (AS) 25 Interim Financial Reporting

    Costs Incurred Unevenly During the Financial Year


    38. 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.

  5. #15
    Accounting Standards
    Guest

    Default Applying the Recognition and Measurement principles of Accounting Standard (AS) 25 - Interim Financial Reporting

    Applying the Recognition and Measurement principles of Accounting Standard (AS) 25 - Interim Financial Reporting


    39. Appendix 3 provides examples of applying the general recognition and measurement principles set out in paragraphs 27 to 38.

  6. #16
    Accounting Standards
    Guest

    Default Use of Estimates of Accounting Standard (AS) 25 - Interim Financial Reporting

    Use of Estimates of Accounting Standard (AS) 25 - Interim Financial Reporting


    40. The measurement procedures to be followed in an interim financial report should be designed to ensure that the resulting information is reliable and that all material financial information that
    is relevant to an understanding of the financial position or performance of the enterprise is appropriately disclosed. While measurements in both annual and interim financial reports are often based on reasonable estimates, the preparation of interim financial reports generally will require a greater use of estimation methods than annual financial reports.


    41. Appendix 4 provides examples of the use of estimates in interim periods.

  7. #17
    Accounting Standards
    Guest

    Default Restatement of Previously Reported Interim Periods of Accounting Standard (AS) 25 - Interim Financial Reporting

    Restatement of Previously Reported Interim Periods of Accounting Standard (AS) 25 - Interim Financial Reporting


    42. A change in accounting policy, other than one for which the transition is specified by an Accounting Standard, should be reflected by restating the financial statements of prior interim periods of the current financial year.


    43. One objective of the preceding principle is to ensure that a single accounting policy is applied to a particular class of transactions throughout an entire financial year. The effect of the principle in paragraph 42 is to require thatwithin the current financial year any change in accounting policy
    be applied retrospectively to the beginning of the financial year.

  8. #18
    Accounting Standards
    Guest

    Default Transitional Provision of Accounting Standard (AS) 25 - Interim Financial Reporting

    Transitional Provision of Accounting Standard (AS) 25 - Interim Financial Reporting


    44. On the first occasion that an interim financial report is presented in accordance with this Statement, the following need not be presented in respect of all the interim periods of the current financial year:


    (a) comparative statements of profit and loss for the comparable interim periods (current and year-to-date) of the immediately preceding financial year; and

    (b) comparative cash flow statement for the comparable year-todate period of the immediately preceding financial year.

  9. #19
    Accounting Standards
    Guest

    Default Appendix 1 Illustrative Format of Condensed Financial Statements of Accounting Standards (AS) 25 Interim Financial Reporting

    Appendix 1 Illustrative Format of Condensed Financial Statements of Accounting Standards (AS) 25 Interim Financial Reporting

    Illustrative Format of Condensed Financial Statements

    This Appendix, which is illustrative and does not form part of the Accounting Standard, provides illustrative format of condensed financial statements. The purpose of the appendix is to illustrate the
    application of the Accounting Standard to assist in clarifying its meaning.


    Paragraph 11 of the Accounting Standard provides that if an enterprise prepares and presents a set of condensed financial statements in its interim financial report, those condensed statements should include, at a minimum, each of the headings and sub-headings that were included in its most recent annual financial statements and the selected explanatory notes as required by the Standard. Additional line items or notes should be included if their omission would make the condensed
    interim financial statements misleading. The purpose of the following illustrative format is primarily to illustrate the requirements of paragraph 11 of the Standard. It may be noted that these illustrative formats are subject to the requirements laid down in the Standard including those of paragraph 11.

    Click here for Illustrative Format of Condensed Financial Statements

    http://www.knowledgebible.com/forum/...cial-Reporting
    Last edited by Accounting Standards; 12-08-2010 at 11:52 AM.

  10. #20
    Accounting Standards
    Guest

    Default Appendix 2 Illustration of Periods Required to Be Presented of Accounting Standard (AS) 25 - Interim Financial Reporting

    Appendix 2

    Illustration of Periods Required to Be Presented of Accounting Standard (AS) 25 - Interim Financial Reporting


    This Appendix, which is illustrative and does not form part of the Accounting Standard, provides examples to illustrate application of the principles in paragraphs 18 and 19. The purpose of the appendix is to illustrate the application of the Accounting Standard to assist in clarifying its meaning.
    Enterprise Preparing and Presenting Interim Financial Reports Half-Yearly


    1. An enterprise whose financial year ends on 31 March, presents financial statements (condensed or complete) for following periods in its half-yearly interim financial report as of 30 September 2001:
    Balance Sheet:

    As at 30 September 2001 31 March 2001 Statement of Profit and Loss:

    6 months ending 30 September 2001 30 September 2000 Cash Flow Statement5:
    6 months ending 30 September 2001 30 September 2000 Enterprise Preparing and Presenting Interim Financial Reports Quarterly


    2. An enterprise whose financial year ends on 31 March, presents financial statements (condensed or complete) for following periods in its interim financial report for the second quarter ending 30 September 2001:

Tags for this Thread

Bookmarks

Posting Permissions

  • Register / Login to post new threads
  • Register / Login to post replies
  • Register / Login to post attachments
  • You may not edit your posts
  •