Submission to the International Financial Reporting Interpretations Committee (IFRIC) on draft interpretation D18 Interim Financial Reporting and Impairment (January 2006).

CPA Australia has communicated to IFRIC its support for the approach proposed in draft interpretation D18 to resolving the conflict between the requirements of IAS 34 (AASB 134) Interim Reporting, and the requirements of IAS 36 (AASB 136) Impairment of Assets and IAS 39 (AASB 139) Financial Instruments: Recognition and Measurement.
 
The approach proposed is that the specific impairment principles regarding the recognition and measurement of impairment losses for goodwill, available-for-sale financial assets and financial assets carried at cost established in IASs 36 and 39 override the general reporting principle established in IAS 34. Therefore the frequency of reporting should not affect the measurement of an entity's annual result.

Comments have been prepared in consultation with members through CPA Australia's Financial Reporting and Governance Centre of Excellence.