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CA Intermediate · Advanced Accounting · AS 25 Interim Financial Reporting

Kaveri Textiles Ltd, a listed company, prepares its first quarter interim financial report for the quarter ended 30 June. Which of the following components is the minimum that AS 25 requires an interim financial report to include, when the entity presents condensed statements?

AS 25 requires an interim financial report to contain at minimum a condensed balance sheet, a condensed statement of profit and loss, a condensed cash flow statement and selected explanatory notes. A full set of financial statements is allowed but not compulsory, and omitting the cash flow statement is not acceptable.

  1. ACondensed balance sheet, condensed statement of profit and loss, condensed cash flow statement and selected explanatory notesCorrect
  2. BCondensed balance sheet and condensed statement of profit and loss only
  3. CComplete set of financial statements with all notes as in the annual report
  4. DOnly the statement of profit and loss with a management commentary

Explanation

AS 25 requires an interim financial report to include, at a minimum, a condensed balance sheet, condensed statement of profit and loss, condensed cash flow statement and selected explanatory notes. Omitting the cash flow statement, as in the second option, does not meet the minimum. A complete set is permitted but not required.

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