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CA Intermediate · Advanced Accounting · AS 25 Interim Financial Reporting

Sundaram Textiles Ltd. prepares quarterly financial results as per AS 25. Which of the following statements about the minimum components of an interim financial report is correct under AS 25?

Under AS 25, an interim financial report must at minimum include a condensed balance sheet, a condensed statement of profit and loss, a condensed cash flow statement and selected explanatory notes. A complete set of annual financial statements is not required for interim reporting.

  1. AIt must contain a condensed balance sheet, condensed statement of profit and loss, condensed cash flow statement and selected explanatory notesCorrect
  2. BIt must contain only a condensed statement of profit and loss
  3. CIt must contain a full set of financial statements identical to the annual report
  4. DIt must contain only a condensed balance sheet and a condensed cash flow statement

Explanation

AS 25 prescribes minimum components: condensed balance sheet, condensed statement of profit and loss, condensed cash flow statement and selected explanatory notes. A full set is not required, and omitting any of these components does not meet the minimum.

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