An interim financial report is a complete or condensed set of financial statements for a period shorter than a financial year. Ind AS 34, Interim Financial Reporting, does not specify which entities must publish an interim financial report. Ind AS 34 is applicable if an entity using Ind AS in its annual financial statements publishes an interim financial report and that asserts compliance with Ind AS. The standard prescribes the minimum content of an interim financial report and prescribes the principles for recognition and measurement in complete or condensed financial statements for an interim period. With an aim to provide guidance on key principles under Ind AS 34, the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI) has formulated an educational material on Ind AS 34 which provides guidance by way of Frequently Asked Questions (FAQs). In this edition of Accounting and Auditing Update (AAU), we discuss the key principles and guidance provided by ICAI in the education material.

This publication also casts its lens on the Guidance note on Companies (Auditors’ Report) Order (CARO) (Revised Edition 20220). In 2020, the Ministry of Corporate Affairs (MCA) revised the CARO (CARO 2020) which is applicable to a wide range of companies for the financial years commencing on or after 1 April 2021. Consequently, ICAI has issued a guidance note on CARO 2020 (guidance note) which provides guidance on application of the CARO 2020. The MCA also amended the Schedule III to the 2013 Act to incorporate amendments relating to presentation and disclosures in the financial statements which are also applicable from 1 April 2021. To update the guidance on CARO 2020, ICAI issued a revised the Guidance note on CARO 2020 (Revised Edition 2022). The amendments incorporate the disclosure requirements of the Schedule III amended by the MCA and include other regulatory updates. Our article on the topic aims to provide an overview of the changes made in the Revised Guidance note on CARO 2020.

Our publication also carries a regular synopsis of some recent regulatory updates in India and internationally.

We would be delighted to receive feedback/suggestions from you on the topics we should cover in the forthcoming editions of AAU.