Interaction of accounting standards refers to the way in which different accounting standards relate and interact with each other when preparing financial statements. Accounting standards are a set of guidelines and rules that provide a framework for companies to follow when preparing their financial statements. They are designed to ensure consistency, comparability, and reliability of financial information.

IAS 34 - Interim Financial Reporting, provides guidance on the preparation of interim financial statements, which are intended to provide investors and other stakeholders with timely information about an entity's financial performance and position.

Understanding the interaction of accounting standards is crucial for companies to ensure that their financial statements comply with all relevant standards and regulations. Failure to comply with these standards can result in inaccurate financial reporting, which can lead to serious consequences for the company, including legal and regulatory penalties, loss of investor confidence, and damage to the company's reputation.

Moreover, accounting standards are interconnected, and changes to one standard can have a significant impact on the application of other standards. Therefore, understanding the interaction of accounting standards can help companies anticipate the impact of changes in one standard on their financial reporting and prepare accordingly.

In conclusion, the interaction of accounting standards is essential for companies to ensure that their financial statements are accurate, reliable, and comply with all relevant standards and regulations. It helps companies to provide transparent financial information to their stakeholders, which is critical for making informed decisions about the company's performance and future prospects.