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IAS 34 — Interaction with IAS 36 and IAS 39

Background

This project concerns an apparent inconsistency between IAS 34 Interim Financial Reporting and IAS 36 Impairment of Assets and IAS 39 Financial Instruments: Recognition and Measurement. IAS 34 states that the frequency of financial reporting will not affect the total numbers reported for an annual period.

However, because IAS 36 and IAS 39 prohibit the reversal of certain impairment losses, in fact if an impairment loss is recorded in an interim period, and has reversed by the year end, the frequency of reporting will effect the numbers in the annual report. This is because had the entity not prepared an interim report, the impairment loss need not have been recognised, but because the interim report was prepared it was recognised and cannot be reversed.

 

Current status of the project

This project has been completed. IFRIC 10 Interim Financial Reporting and Impairment was issued on 20 July 2006.

 

Project milestones

DateDevelopmentComments
12 January 2006 IFRIC D18 Interim Financial Reporting and Impairment issued Comment deadline 31 March 2006
20 July 2006 IFRIC 10 Interim Financial Reporting and Impairment issued Effective for annual reporting periods beginning on or after 1 November 2006

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.