Under IAS 34,companies Generally Should Use the Discrete Approach for Interim

question 9

Essay

Under IAS 34,companies generally should use the discrete approach for interim reporting.However,IAS 34 outlines exceptions to this rule.Explain what these exceptions are and how they are treated in interim reports.What argument does IAS 34 provide for this treatment?

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Definitions:

Functional Currency

The primary currency of the main economic environment in which an entity operates.

Asset And Liability Account Balances

The respective values of a company's current and non-current assets, and its current and long-term liabilities at a point in time.

Local Currency

Refers to the legal tender or official currency that is used within a country's borders.