At its November 2012 meeting, the IFRS Interpretations Committee (the Interpretations Committee) discussed a request to clarify the meaning of “interim financial report” in IAS 34. The submitter noted that the definition of the term “interim financial report” in paragraph 4 of IAS 34 is not sufficiently clear with respect to whether the “interim financial report” covers only the information reported under IFRS (meaning the IFRS interim financial statements) or more generally also includes a management report or other elements in addition to IFRS interim financial statements. The submitter further noted that there is diversity in interpreting the phrase “elsewhere in the interim financial report” in paragraph 16A of IAS 34 because it is not clear whether the phrase means that the required information should be provided in the notes to the interim financial statements or may be presented elsewhere.
The Interpretations Committee tentatively decided to recommend to the IASB that it should amend paragraph 16A of IAS 34 through Annual Improvements, to clarify the meaning of disclosure of information “elsewhere in the interim financial report” and to require the inclusion of a cross-reference from the interim financial statements to the location of this information. The Interpretations Committee referred to paragraph B6 of IFRS 7 Financial Instruments: Disclosures and paragraph 113 of IAS 1 Presentation of Financial Statements.
At the May 2013 IASB meeting, the IASB discussed the proposal made by the Interpretations Committee to amend paragraph 16A of IAS 34. The IASB tentatively agreed with the Interpretations Committee’s recommendation, subject to making clear in the Basis for Conclusions that the disclosure elsewhere in the interim financial report of information required by IAS 34 would extend the perimeter of the financial statements to include that part of the interim financial report.
Fifteen IASB members agreed. One IASB member was absent.
The IASB plans to publish the exposure draft of proposed amendments Annual Improvements to IFRSs 2012-2014 Cycle in the fourth quarter of 2013.