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CA Intermediate · Advanced Accounting · Applicability of Accounting Standards

Sagar Ltd, a Non-SMC, is preparing its annual financial statements. Which of the following is correct regarding AS 25 Interim Financial Reporting?

AS 25 applies when an entity is required or chooses to prepare an interim financial report, and it sets content and measurement principles. Whether interim reports must be published is decided by law or regulators such as SEBI, not by AS 25, and it does not require audit.

  1. AAS 25 itself requires every listed company to publish quarterly results
  2. BAS 25 applies to an entity that is required or elects to prepare an interim financial report; the requirement to publish is set by law or regulator, not by AS 25Correct
  3. CAS 25 prescribes that an interim report must be audited
  4. DAS 25 prohibits any entity from preparing interim reports unless SEBI mandates it

Explanation

AS 25 does not mandate which entities must publish interim reports; that is a matter for statutes, regulators (such as SEBI for listed entities) or the entity's choice. It prescribes the minimum content and recognition and measurement principles when an interim report is prepared. It does not require audit, and it does not prohibit voluntary reporting.

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