The selected explanatory notes

Learning objectives

• Explain that the notes to an interim financial report deal with significant events and transactions since the end of the last annual reporting period, without repeating the annual notes, and update the relevant annual information.L1, L2

Normative references

• IAS 34 §15The interim financial report explains the events and transactions that are significant to an understanding of the changes in financial position and performance since the end of the last annual reporting period; this information updates that presented in the most recent annual financial report. Para. 15A clarifies that the user has access to the annual report: relatively insignificant updates are not necessary.
• IAS 34 §15CIndividual Standards provide guidance on the disclosures for many of the items listed in para. 15B; when an event is significant to an understanding of the changes since the last annual report, the interim report explains it and updates the relevant information in the last annual report.

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

4 questions

• What must the selected explanatory notes of an interim report explain?L1
• Halden SA is preparing its half-year report. Its annual notes comprise 38 notes. During the half-year: acquisition of a subsidiary for EUR 12,400,000 (judged significant to an understanding of the changes, case assumption); a bank loan of EUR 6,000,000 (judged significant, case assumption); pension obligations with no notable change (case data). Write a short justification of what the notes to the report must contain, distinguishing rule, case facts and professional judgement.L2
• Which of the following are among the minimum additional disclosures to be given in the notes to the interim report, or in another document available on the same terms as the report? More than one answer is possible.L2
• Which statements about the consequential amendments made to IAS 34 by IFRS 18 are correct? More than one answer is possible.L3