| 10 | The reporting requirements of IAS 34 have been adapted for application by entities that prepare their annual financial statements in accordance with FRS 102. The key changes made to IAS 34 for the purposes of developing FRS 104 include: |
| (a) | Disclosures that are not required by FRS 102 have been deleted. For example, certain fair value disclosure requirements that apply under IAS 34 have not been repeated in FRS 104. |
| (b) | Some disclosure requirements, for example those in relation to fair value measurements and business combinations, apply only if the entity would be required to make the same disclosures in the annual financial statements. |
| (c) | Related party disclosures may be omitted for transactions between wholly-owned members of a group since FRS 102 exempts such transactions from disclosure in the annual financial statements. |
| (d) | Disclosure requirements that apply when an entity adopts a new financial reporting framework for the first time have been inserted. Similar disclosures are required under IFRS, although they are not part of IAS 34. |
| (e) | The annual financial statements disclosure requirements in paragraph 26 of IAS 34 concerning significant changes in estimates reported in an interim period have been deleted because FRS 104 addresses only reporting requirements in interim financial reports. |
| (f) | FRS 102 permits the presentation of simplified primary financial statements in certain circumstances. These presentation requirements have been included in FRS 104 to ensure consistency of presentation in the annual and interim financial statements. |
| (g) | Entities that are not required to present a cash flow statement in the annual financial statements are also exempt from this requirement in the interim financial report. |
| (h) | The principle that the frequency of reporting should not affect the measurement of the annual results has been qualified when FRS 102 would prohibit a reversal of an impairment charge5. This is consistent with the requirements in IFRIC 10 Interim Financial Reporting and Impairment. |
| (i) | The preparation requirements in paragraph 14 of IAS 34 pertaining to consolidated interim financial reports have been deleted, because entities that apply FRS 104 will generally prepare entity-only annual financial statements and interim financial reports. |
| 11 | A number of respondents recommended that the illustrative examples to IAS 34 should be repeated in FRS 104 as they provide useful guidance for preparers. Consequently, the appendices were included as non-mandatory guidance in FRS 104 adapted for use by entities that prepare their annual financial statements in accordance with FRS 102. |
| 5 Following amendments made to FRS 102 in July 2015, impairment losses recognised for goodwill cannot be reversed. |
|
|
Licence and copyright | © 2018, LexisNexis Group a division of Reed Elsevier (UK) Ltd. All rights reserved. |