- 7 Marks
CR – May 2024 – L3 – SC – Q5b – Interim Financial Reporting (IAS 34)
Discuss the role of estimates in interim financial reports and provide examples allowed under IAS 34.
Question
Accounting information must be reliable and free from material error, but some accuracy and reliability may need to be sacrificed for timeliness and cost benefits, especially in interim financial reporting. IAS 34 acknowledges that interim reports require more extensive use of estimates than annual reports to facilitate timely reporting.
Required:
Discuss, giving relevant examples, the financial information that could be included in interim reports where IAS 34 permits the use of estimates. (7 Marks)
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