Reporting dates

Learning objectives

• Explain the reporting date requirement and the maximum difference of three months, with adjustments for significant events.L2

Normative references

• IAS 28 §33The entity uses the most recent available financial statements of the associate or joint venture; when reporting dates differ, the investee prepares, for the investor's use, financial statements as of the same date as the investor's, unless impracticable. The adjustment for significant transactions and events in between and the three-month limit are dealt with in para. 34.
• IAS 28 §34When the financial statements of the associate or joint venture used under para. 33 are prepared as of a date different from the entity's, adjustments are made for the effects of significant transactions or events that occur between that date and the date of the entity's financial statements; in any case, the difference between the reporting dates is no more than three months, and the length of the reporting periods and any difference between the dates are the same from period to period.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• Brise SA, an associate of Alba SA, has a 30 November year end, while Alba's is 31 December. In December, Brise sold a major asset (case data). How does Alba treat Brise's statements for the equity method?L2
• Cime SA, an associate of Alba SA, has a 31 October year end, while Alba's is 31 December. Preparing statements of Cime as of 31 December is impracticable (case data). In November, Cime incurred a major exceptional loss. Write a short note stating how Alba treats Cime's statements, distinguishing case facts, rule and professional judgement.L2