Interaction of accounting standards refers to the interdependence between different accounting standards and the impact that one standard may have on another. This is important because accounting standards are often interrelated and can impact each other, and therefore, understanding the interaction between them is crucial in order to apply them effectively.

In the case of IAS 34, Interim Financial Reporting, it is important to understand the interaction between IAS 34 and other accounting standards that may impact the preparation and presentation of interim financial statements. For example, IAS 34 requires that interim financial statements be prepared in accordance with the recognition and measurement principles of IFRS, which are set out in other IFRSs. Therefore, in order to properly apply IAS 34, one must have a good understanding of the underlying principles of IFRSs and their interaction with IAS 34.

Furthermore, the disclosure requirements of IAS 34 may also interact with the disclosure requirements of other accounting standards, such as IAS 24 on related party disclosures and IAS 33 on earnings per share. Therefore, it is important to understand the interaction between these standards to ensure that the interim financial statements comply with all applicable disclosure requirements.

Overall, understanding the interaction between accounting standards is important because it enables companies to apply them effectively and ensure compliance with all applicable standards. In the case of IAS 34, understanding its interaction with other accounting standards is crucial in order to prepare and present interim financial statements in accordance with the applicable requirements