Headings and subtotals of condensed statements

Learning objectives

• Determine whether a condensed statement includes, at a minimum, each of the headings and subtotals included in the most recent annual financial statements, and whether additional line items must be added because their omission would make the information misleading.L1, L2
• Identify the error in a condensed statement that has merged or removed a subtotal presented in the annual financial statements.L1, L2

Normative references

• IAS 34 §10If an entity publishes condensed financial statements, they include, at a minimum, each of the headings and subtotals included in its most recent annual financial statements and the selected explanatory notes; additional line items are included if their omission would make the statements misleading.

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

2 questions

• What must the condensed statements of an interim report include at a minimum, in addition to the selected notes?L1
• Tavira SA's annual statements present an "operating profit" subtotal between gross margin and finance result. For the half-year report, the preparer deletes this subtotal "to lighten the condensed statement" and goes directly from gross margin to profit before tax. What must Tavira SA do?L2