What all Accounting Ratios does IAS 34 connects which may get affected?


IAS 34, Interim Financial Reporting, does not directly connect to any specific accounting ratios. However, interim financial statements prepared in accordance with IAS 34 may include financial ratios that are commonly used to analyze a company's financial performance and position. The following are some of the accounting ratios that may be affected by the interim financial statements prepared in accordance with IAS 34:

  1. Liquidity ratios: These ratios measure a company's ability to meet its short-term obligations, such as current ratio and quick ratio. The interim financial statements may provide information on the company's current assets, current liabilities, and other short-term financial obligations that could affect these ratios.
  2. Solvency ratios: These ratios measure a company's ability to meet its long-term obligations, such as debt-to-equity ratio and interest coverage ratio. The interim financial statements may provide information on the company's long-term debts and other obligations that could affect these ratios.
  3. Profitability ratios: These ratios measure a company's ability to generate profits from its operations, such as gross profit margin and net profit margin. The interim financial statements may provide information on the company's revenues, expenses, and net income that could affect these ratios.
  4. Efficiency ratios: These ratios measure a company's efficiency in using its assets to generate sales, such as inventory turnover and receivables turnover. The interim financial statements may provide information on the company's inventory and accounts receivable that could affect these ratios.

Overall, while IAS 34 does not directly connect to any specific accounting ratios, the interim financial statements prepared in accordance with IAS 34 may include financial ratios that are commonly used to analyze a company's financial performance and position. As an analyst or investor, it is important to consider the impact of interim financial statements on these accounting ratios and assess the company's financial health accordingly.




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