Interim Financial Statements

What are the Interim Financial Statements?

Interim financial statements are the financial statements that are released during the period of the year between which annual statements are released (in general, interim statements are released quarterly, which are consolidated into yearly).

Explained in Short

Interim Financial Statements are those set of financial statements that provide details for less than one year and can either complete or can be condensed version. Publicly-held companies must issue such financial statements at quarterly intervals.

The purpose is to provide other users and investors updated information on the corporation’s operation.

To get a timelier look into a business’s operations instead of waiting till the end of the accounting periodAccounting PeriodAccounting Period refers to the period in which all financial transactions are recorded and financial statements are prepared. This might be quarterly, semi-annually, or annually, depending on the period for which you want to create the financial statements to be presented to investors so that they can track and compare the company's overall more and are not available for long after financial year close.

While allocating investment capital, investors find periodic snapshots, which eventually lead to higher liquidityLiquidityLiquidity shows the ease of converting the assets or the securities of the company into the cash. Liquidity is the ability of the firm to pay off the current liabilities with the current assets it more.

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For eg:
Source: Interim Financial Statements (


The concept of this can be applied to any term of periods, such as the last seven months or five months. As of a specific point in time, since this kind of financial statement only refers to equity, assets, and liabilities, the interim concept does not apply to the balance sheet, rather than over a while. As they contain the same documents, interim financial statements are similar to annual financial statements. The ones found in annual financial statements will also match the line items appearing in the interim statements.

The primary differences can be found in the areas discussed below:

Are Interim Financial Statements Audited?

Given the cost and time required for an audit and the requirement of the financial information, mostly it is not audited and is also condensed; only the year-end annual financial statements are audited.

Interim Financial Statements - Unaudited

Its quarterly financial statements are instead reviewed if a company is publicly-held. An outside auditor may conduct the review, but the activities are much reduced from those employed in an audit, encompassed by a review. Therefore, it becomes essential to read the complete and previously issued annual financial statements and reports.

Accounting practices in these statements must be regular with the accounting practices, which will be followed in the annual financial statements, for the interim statements amounts to, the add up to the amounts reported in the official income statement for the year.


Now we will discuss a few other vital contents:

IAS 34 ‘interim financial reporting’ requires that the interim financial statements either condensed or complete shall include:

To report a financial company’s performance, it is applied before the beginning of a fiscal year and at the end of a fiscal year. The series of condensed statements are also included in these statements, which help cover the status of the company and the economic position. The position of a company, financial status, income, mechanism of cash flowCash FlowCash Flow is the amount of cash or cash equivalent generated & consumed by a Company over a given period. It proves to be a prerequisite for analyzing the business’s strength, profitability, & scope for betterment. read more, and other related changes are many of the attributes included in these.


A public financial report covering less than one year is what interim financial statements are basically. Typical examples may be a simple quarterly report or a six-monthly financial report. It does not need to be audited. However, by providing the latest information through this interim financial reporting, the companies can timely communicate their financial performance to the investors and financial analysts.



This article has been a guide to what are interim financial statements. Here we discuss features of interim financial reporting along with importance and examples. You may learn more about accounting from the following articles –