If one fails to understand the interaction of accounting standards, it can have a significant impact on financial reporting. Financial reporting requires compliance with multiple accounting standards, and failure to understand how they interact with each other can result in inaccurate or incomplete financial statements.

Specifically with reference to IAS 34, failure to understand the interaction between this standard and other accounting standards can result in incomplete or inaccurate interim financial statements. For example, if a company fails to apply the requirements of IAS 34 properly and instead applies the requirements of another accounting standard, this can lead to a misstatement in the company's financial statements.

In addition, failure to understand the interaction of accounting standards can result in non-compliance with regulatory requirements. Regulatory bodies often require companies to comply with specific accounting standards, and failure to do so can result in penalties or legal action. For example, BODIES LIKE THE the Securities and Exchange Commission (SEC) in the US AND SEBI IN INDIA and others in respecive countries requires companies to comply with Generally Accepted Accounting Principles (GAAP), and failure to comply can result in penalties or legal action.

Overall, failure to understand the interaction of accounting standards can have serious consequences for financial reporting. It can lead to inaccurate or incomplete financial statements, non-compliance with regulatory requirements, loss of investor confidence, and damage to the company's reputation. It's important for companies and individuals involved in financial reporting to seek guidance and consult with experts to ensure compliance with all relevant accounting standards, including IAS 34.