5 25 interim Financial Reporting IFRI

I IFR is a kind of Update on Complete Finantial statement

of last year
this helps users timely Better Reliable information

FR Can be made in comiliance with Listing Requirement

or other reasons Allly AS 25 in Preparation of I F R

Clause 338 at has no relation with IFR it Deals with interim

I 3s int in itimtrinciiie s

Q1 IFR means Finaniac report containing either a comtlete

set of Financial statment or set of Condenced

Financial statements for interim Period
interim Period means Financial reporting Period shorter than
Full Financial year any thing which is less than 12m

St
year of operation may be shorter than 12 months

still it is not interim Period L

L
Structure of Fin stat is not giving all inform
only extract Relevant Portion
3 Content of IFR
Basic content should include
i Balance sheet
ii Stat of P L
iii cash Flow statement
iv notes to Cassie c Eh
For interim Period Comparative Period

This Basic Content Can be Full complete Just like

annual Statement schedule I 08 condensed

F such statement are complete consider interim

Period and Prepare Financial statements Follow all rules
OF Schedule III Prepare F 5 byusing all applicable As Disclo Reg

IF such statements are condensed then Hedges

sub heads should be as in most recent annual

Financial statements Limited information

Selected notes to accounts in condensed statement
should be of significant events transactions like

Decline in value ofinventory

2 Impairment Losses fits Reversal disclosure
Gain Loss on sale of PPE fussia
dene hain
Reversal of Provision
5 litigation settlement
6 Related Party transactions
7 Segmentreporting forprimarysegments
 also statement of Policies methods and computation
IF changed then its disclosure is required
IF Not changed in IFR no need to
to Repeat same Policies

interimFinancial statement content timeline

Ii Bls L Car Fin Year 23 19

a interim Period 1 4 23 30 9 23

B5 Euryear Lastyear

Ii Stat of P L 4 statements IFR 1 10 23 31 12 20

ey
Car year Last year

I s I L

it sur year
SET 2 stat
Iii Comparative
Year to date
Year to date
114 31112123 114 3111212022
 11 Reporting Period it should be

315 comparative 1 Year end Previous year

213 5
Interim Period Last date of interim Period
P L interim Period For Interim Period
P L For year to Date current Period

Comiarative For Previous Year interim Period

For year to date Previous year

Cash flow statement

2 CFS interim Period For year to Date current Period

For year to date Previous year

 Reports for IFR
F Y 22 23 311,3123 FY 23 24
a oz as ay Q a Of Oy 3113124
114 3016 3019 31 12 31 3 29
IFR 0117 to 3019123
Year Last year
B5 as on 3019123 as on 4 end Bl's
I 2 Reports Lastdayof interimPeriod 31 3 23

C Year 2 inform L 7196 2 year

21 Resultsfor02 117 3019123 Q 117122 3019122
Year to date 114 3019123 Q 1 4 22 3019122
3 CFS 4 T.D CFS 1 4 23 3015123 YTD 1 4 22 301912

eg A Itd Prepare Interim Financial ReportingAs Per As zs

their car I F R is for 3rd Qtr of 23 24
What should be comparative For above ReportingPeriod

solution B8 95 on 31 3 23

P L Qs 1 10 22 31 12 22
YTD 1 4 22 31112122
CFS YTD 1 4 22 31 12 22
 A Hd is Preparing
inter Fin Results
eg
For Interim Period 1 4 3016123
Discuss
1 F Results are Prepared Not As per as as fetusPaper
it is prepare as per se re cause
many
it should be
anaterly
Comparative all are given
by SEBI
Yaha bhi Recog measure ketrine same use honge

I F Reporting Period 114 3117123

eg
Not
compulsory to divide year in equal Part
IFR can be Prepared For 5 months

4122 31,17122 17123

45m comparative 8sason

P L M

as

9
 IF P 1 7 23 30 9 23 Ton Comparative
114122 311
9,1122 6015122

114k 41B 3019123 Tilsley

BIT
IT 9355123

1111114 M

ME
I
IKEA
as
YTD

AnnualPeriod 22 23 23 24
eg
1110 31112123
a 1 31112123 3173123
as an

b PL 1110123 21112123 V15 1110122 31 12 22 3h

YTD 1 4 23 31 12 23 V15 1 4 22 31 12 22 9m

a CFS
1141235 31 12 23 V15 1141235 31 12 22

why to Provide betterunderstanding better Comparision

Recognation all Questions fromthis 5

measurement

Accounting Policies should be same as in most recent

annual Finantial Statements Matlab Gap o same aiding

Policies Rakhna hai agar same Poling Follow Kar ranchain

to Usko disclosure Mat Karo
Rule 4 Income Exp
Jo income our Jo exp Jis interimReporting Period main
Accrued had as income EXP Ko Usi IFR main Record Karna

Padega Whether humko aska benefit mile Ya na mile

labform as ay
99
70
option t
if 1250k 12.50k 12.50k 12.50k incorrent

credit in 50k
100 O main he recog Karenge
option 2 long Bhale he Result abnormal ho Jaye
Rule 5
# agar Kisi head ko year end Par defer Kar sakte ho to usko
Interim Period main bhi deffer kiya ja sakta hai:

eg Prepaid exp unexpired insurance chg Advance salary

Property manicinal tax Paid for entire year
4 w commission
Discount on Issue ofdebenture etc

Rule: 3 Change in accounting estimates

Agar Koi bhi estimate change hota hai to uska total effect sirf us Period
main adjust hoga jisme estimate change hua hai
For example Change in Rate of Provision For B'debts. From 8% to 11% to
Jo 3% increase hua hai bo poora usi IFR main he adjust hoga jisme rate
change hua hai / estimate change hua hai.
 Rule: 2 Change in accounting Policies:

Jab Policy change hui aur is Karan se Uska Cumulative effect Jis interim
Reporting Period main hoga to us case main sirf Uska Respective interim
Period se related amount he adjust hoga. Jaise FIFO se Weighted Average
aaye to change in Policy ka total effect say ₹ 3 Lakhs is quarter main
deduct hua hai. Jisme Sirf ₹ 1 Lakh is quarter se related hai, to I.F.R. main
sirf Usi quarter Ka amount ₹ 1 Lakh aayega. Remaining amount of 2 Lakhs
will be adjusted retrospectively in previous IFR of current year.

SpecialPoint Variations from I.F.R. - Mco

If at the end of financial year, financial statements vary significantly different
from interim financial report, then such variation considered as material ,
should be disclosed with reasons.

Creation of provision at the end of each I.F.R. 5 29

Entity should made best estimate for provisions at the end of each interim
financial period. Any provision made earlier will be cancelled.
Make Provision of retirement benefit at the end of each interim period and
cancel any earlier provision made.

Treatment of tax-
• Entity should make best estimate its tax expenses for the year.
• It should calculate weighted average tax rate for full year and then apply this
rate for interim period, if the entire year governs with same finance Act.
• If two finance Act applied in accounting year, then use actual rate of tax on
income of respective IFR.

• Application of As-4- Event occur after Bls date

yes we will follow effect of AS-4 from last date of interim period to the date
of approval by B.O.D.
as per trovisions
As.hn or say.fi
fieg
 É
4
336

12L

I
2 2 1
H

5 5
a
8

O or 03 04
g a
111 3113 114 3016 in 3019 1110 31 12
Gggy

Note t non recurringitems

in PointNo.tn 4,6 trans are Non recurring in
nature lie they have to be fully changed in their
respective IFR in which they were Incurred
80 Divideof Point No I cannot be deseri
extra ordin gain of pointno.ge can notbetran.to dy
Profit on sale of fun cannot be Distributed
 Apportioned in Next Qtr

NIII sales Promotion exp are not classified as

Deferred Revenue Exp So 1001 amt is req

to be w oft in the Period in which it was

incurred in Finan year IFR

since in B'S of annual ate it can't be Deferred

in IFR it can not defer

Nfs change in method of decree is change

in alding estimate its loot impact
will be Provided in IFR of that interim
period in Which Estimate Changed
So we can that company hadgiven
say
correct treatment
if there is a
change in Alling Policy
Nfg
then Fin effect such change in policy related
to cur I F'R should be ads in IFR
Fin effect relates to Previous Otr is to
be adjusted Retrospeitively
 calculation of corrected Profit of 03

Book Profit 400,00

Ads
For Extra ord item 100000
nonreturring
It Dividends 4 1 300000

1 Extra 100000
ordinary gain 20020
1
Profit on saleof inv in a 5000 0

wrongly gained in 03 294

2 Sales Promotion exit

wrongly deferred 1200001
15 80 1

3 Loss Redated Bev Otr Wrongly charged

in car at on a e
of chy.in Policy 1,00,00

Corretted Befit 8,00 07

 Q1 50000 PBT
Q2 10000 PBT
as 200000 PBT
ay 20000 PAT
10.00.00 C

tax Rate for 1st 70000 exempt

Remaining amt 30

annual taxable Income 300000

10L 7L X 301

9000

W.AT Rate TE 100 90k

to
Annual Pgt 1000k

Qi 50000 91 4500 Use this Rule

02 100000
when entire
9.1 9000
alding year govern
03 Rooooo gi 18000 with same Finance
Cy 200000 1800 act
gy
t.EE
3 s
Coffin

l 3114124
alding Year
3m 9m
29 25
Financial
year II 24
5113125

we haveto apily α Finance a't then

No need to calculate W A tax Rate
respective tax Rate spelif
now any on

I'ER
 Taxation
Eg

Q 2 11 I tax Rate
Pto
02 200,000 Est 5000 54952 00
03 300,000 Est 35000 400000 70000 101
04 550 000 Est 140000 700,000 1000000 20
7300,000 18000
10,00 000 30

Callulate w Aug annual tax Rate

O 4L 01 42 00
4 7L 10.1 x 3L 3000
7 10L 2011 31 60000
10 132 30 732 900 0
180,000
W
Aug Annual tax Rate 70
13.87
Q 250000 13 846 34,615
Q2 200000 13.840
27,692
A 3 300000 13.846 41538
QM 550000 13.846 76155

F there are multiple stab different rates for

respective slab then we will callalate w Aug annual tax
Rate them apply such tax rate on each interim
Period's PBT
eg F we have different tax Rates for different
types of income eg Papi C a 57
Income of PGDP is consistent earned in each

Interim Period where as cap

gain is non recurring

occurred in specific interim Period

any
01 02 03 Oy
PGBP 200K book 250K 150K
Ca 200k

tax Rate C 4 20 PGBP O 5L 107

5 10L 201
10L 30

We will callulate W
Aug Annual tax Rate
For PaBP
ttfty.fi me 12C

tax 0 5 5 10 50K
5 10 5 20 100k
10 L 2 30 60k
210k
210000 100 17 50
1200000
 Cal of tax expenses

Qp 200k 17.501 35,000

Q2 Gooky 1750 105,000
03 Basin income
250 17.50 43750

5 nooo
837 50

Qy 150K 17.50 26250

total 250 00

eg interim Period Falli in DIFF assessen year

Company's aiding year 1 10 24 so 3019125
F y For tax Purpose 01 04 to 3173
tax Rate For 24 25 25 0

255 26 30
FY
Estim earning 1 10 31 12 24 200k
111 31 3 25 300k
114 30 6 25 250K
1 7 30 9 25 35611
26
114124
a
31131255,114125
a 31 3
1110kg Q 02 03 Oy 3079125

50k 75k 75k look

 Brit tax Rate PAT
eg 4 Q 300k 20 foooo tax exp 240000
02 100k 20 36000 tax exp 144000
03 120k 20 24000 tax saving 96000
Qy 240k 20 48000 tax EXP 192000

600K

tax Rate O 2L 101 2L 20k

2 41 20 2L YOK
4 0L 30 2L 60K
120k
W Aug annual
tax Rate 162
1 100 20