The use of estimates

Learning objectives

• Explain that the measurement procedures for interim reporting must produce reliable information and that the judgements and estimation uncertainties of the last annual report are carried into the interim report.L2

Normative references

• IAS 34 §41The measurement procedures followed in an interim financial report must be designed to ensure that the resulting information is reliable and that all material financial information relevant to an understanding of the financial position or performance is appropriately disclosed; annual and interim measurements often rely on reasonable estimates, but interim reporting generally requires greater use of estimation methods.

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

1 question

• What does IAS 34 provide for the measurement procedures of an interim report, which rely more extensively on estimates than the annual statements?L2