The Institute of Chartered Accountants of India (ICAI) has issued a combined Guidance Note revising its previous Guidance notes on Applicability of AS 25 to Interim Financial Results and Measurement of Income Tax Expense for Interim Financial Reporting (IFR) in the context of Accounting Standard (AS) 25.
The revised Guidance Note deals with the issue as to whether AS 25, Interim Financial Reporting, is applicable to interim financial results presented by an enterprise pursuant to the requirements of a statute/ regulator and the measurement of income tax expense for the purpose of inclusion in the interim financial reports.
For example, quarterly financial results presented under SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015 entered into between Stock Exchanges and the listed enterprises.
The Reliable financial reporting plays a crucial role in providing the relevant accounting information necessary to all stakeholders like bankers, investors, government authorities, credit rating agencies etc in elaboration of their operational, funding or investment decisions.
In this regard, Interim Financial Reporting provides frequent and timely updates of an entity’s performance at a given point in time, thus playing a crucial importance for all the stakeholders.
“The revised Guidance Note incorporates updated references used in the earlier Guidance Notes and relevant examples. It also enlightens about the impact of Opinions issued by ICAI on the preparation of interim financial reports,” the ICAI President, CA Atul Kumar Gupta said.
The Institute of Chartered Accountants of India (ICAI) through its Research Committee has been relentlessly working to ensure that the users of financial information of world’s fastest growing economy of India are always equipped with updated and reliable guidance.
The Research Committee of the Institute undertaken the task to revise ‘Guidance Note on Applicability of AS 25 to Interim Financial Results’ which was issued in the year 2008 and ‘Guidance Note on Measurement of Income Tax Expense for Interim Financial Reporting in the context of AS 25’ which was issued in the year 2006 to issue as ‘Guidance Note on Applicability of AS 25 and Measurement of Income Tax Expense for Interim Financial Reporting’.
For full text of the Guidance Note, Click here.
