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CA Intermediate · Advanced Accounting · AS 25 Interim Financial Reporting

Sagar Textiles Ltd, a listed company, decides to publish a condensed interim financial report for the quarter ended 30 June. It does not publish a complete set of financial statements for the interim period. Which of the following is the minimum set of components that AS 25 requires in that report?

The minimum interim report under AS 25 has four components: 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 is not enough, and a full set of statements is optional, not required.

  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. CCondensed statement of profit and loss and selected explanatory notes only
  4. DA complete set of financial statements as required for the annual report

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. Omitting the cash flow statement, as in the second and third options, falls short of the minimum. A complete set is permitted but is not the minimum.

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