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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Ishaan Steels Ltd's accountant states: 'Since we report quarterly, each quarter's measurements may be made as a stand-alone period, and the annual result will be the sum of the quarters whatever the policies used.' Which statement best corrects this view under Ind AS 34?

Ind AS 34 requires the same accounting policies in interim statements as in annual statements, and measurements are made on a year-to-date basis. This ensures that whether an entity reports annually, half-yearly or quarterly, the measurement of its annual results is unaffected.

  1. AInterim reports must use the same accounting policies as annual statements, and measurements are made year-to-date so reporting frequency does not affect annual resultsCorrect
  2. BInterim reports may use simplified policies as long as the annual report is restated
  3. CQuarterly measurement may differ from half-yearly measurement because frequency determines the policy
  4. DYear-to-date measurement applies only to the final quarter

Explanation

Ind AS 34 requires the same accounting policies in interim statements as in annual statements. It also requires measurements on a year-to-date basis so that frequency of reporting does not affect annual results. The other options allow policy or measurement differences that the text does not permit.

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