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CA Intermediate · Advanced Accounting · AS 25 Interim Financial Reporting

Meridian Textiles Ltd, a listed company, prepares its quarterly report for the quarter ended 30 June in accordance with AS 25. Which of the following represents the minimum components that the interim financial report must contain?

The minimum interim report under AS 25 comprises a condensed balance sheet, a condensed statement of profit and loss, a condensed cash flow statement and selected explanatory notes. Leaving out the cash flow statement or the notes would fall short of the minimum required by the standard.

  1. ACondensed balance sheet and condensed statement of profit and loss only
  2. BCondensed balance sheet, condensed statement of profit and loss, condensed cash flow statement and selected explanatory notesCorrect
  3. CComplete balance sheet, statement of profit and loss and all annual notes, but no cash flow statement
  4. DCondensed statement of profit and loss and condensed cash flow statement only

Explanation

AS 25 prescribes four minimum components for an interim financial report: a condensed balance sheet, a condensed statement of profit and loss, a condensed cash flow statement and selected explanatory notes. Options with only two components omit required items. An enterprise is free to give more, but a full annual set is not the minimum.

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