CERTYNEX IFRS ACADEMY

In the third quarter, year-to-date measurement leads Polaris SA to revise an estimate used in its interim financial statements for the first half-year (case facts). An analyst concludes that each interim period is a stand-alone period whose published estimates can no longer change. What should be retained under IAS 34?

The analyst is right: each interim period stands alone and the half-year estimate remains fixed.

The interim period is part of the financial year: year-to-date measurement may change estimates reported earlier, under the recognition principles of the annual financial statements.

Interim periods follow their own recognition principles, different from those of the annual financial statements.

Reporting quarterly must lead to an annual result different from the one annual reporting alone would have given.