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CA Final · Financial Reporting · Ind AS 34 Interim Financial Reporting

Tungabhadra Steels Ltd argues that because it reports quarterly, it should measure each quarter independently and the sum of the four quarters need not equal its annual result. Which statement is correct under Ind AS 34 paragraph 28 as quoted in Appendix A?

Interim measurements are made on a year-to-date basis so that the frequency of reporting, whether annual, half-yearly or quarterly, does not affect the measurement of annual results. Tungabhadra's discrete independent-quarter approach conflicts with this requirement in Ind AS 34.

  1. AReporting frequency may affect annual results if disclosed in the notes
  2. BQuarterly measurements are made on a discrete-period basis to avoid distortion
  3. CMeasurements for interim reporting are made on a year-to-date basis, so frequency of reporting does not affect annual resultsCorrect
  4. DYear-to-date measurement applies only to half-yearly reporters, not quarterly ones

Explanation

Ind AS 34 states that the frequency of reporting (annual, half-yearly or quarterly) shall not affect the measurement of annual results, and that to achieve this, interim measurements are made on a year-to-date basis. This applies to quarterly reporters as well, so discrete independent quarters are not the rule.

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