Which of the following statements regarding IAS 34 is true?

The statement that it is applied for financial reporting for periods shorter than a full financial year is accurate. IAS 34, "Interim Financial Reporting," specifically addresses the reporting requirements for such periods, allowing entities to provide financial information for interim periods, which are typically shorter than one year.

This standard is essential for providing timely and relevant financial information to stakeholders between the annual reporting periods, facilitating more informed decision-making. Instead of waiting for an entire year to pass, investors and analysts can access updated financial data, which helps to capture the entity's performance and position more frequently.

The other statements do not align with the principles set out in IAS 34. For instance, the notion of issuing annual reports every ten years is not feasible under any financial reporting framework, as annual reports must be issued every financial year. Additionally, the standard is applicable to entities that have shares or debt instruments traded in the marketplace, rather than those isolated from market trading. Lastly, the standard encourages the issuance of reports during the financial year rather than prohibiting it, as interim financial statements are a key component of IAS 34.