IFRIC publishes proposed guidance on interim financial reporting and impairment

12 January 2006

The International Financial Reporting Interpretations Committee (IFRIC) released for public comment a draft Interpretation, D18 Interim Financial Reporting and Impairment. The proposed Interpretation has been developed in response to requests for clarification of the interaction between International Accounting Standard (IAS) 34 Interim Financial Reporting and two other standards, IAS 36 Impairment of Assets and IAS 39 Financial Instruments: Recognition and Measurement, and the effect of that interaction on subsequent interim and annual financial statements.

The proposed Interpretation clarifies that an entity cannot reverse an impairment loss recognised in a previous interim period in respect of goodwill, an investment in an equity instrument or a financial asset carried at cost. From 13 January 2006 the complete text of the draft Interpretation will be freely available from the Website.

The proposals are open for public comment until 31 March 2006.

Press release

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