Explain the goal of interim reporting and how the interim period is viewed relative to an...

Explain the goal of interim reporting and how the interim period is viewed relative to an annual period.

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The primary goal of interim financial statements is to provide to users in due time the accounting information which is required for the elaboration of operational or funding or investment decision. Moreover can provide users the meaningful information about the directions on the business development and on the seasonality of certain activities. This information could be highlighted in the financial statements for the financial year. The meaningful, reliable and timely interim financial reporting enhances the ability of creditors, investors, and others to understand a firm's capacity to generate earnings and cash flows, its financial condition and liquidity

Interim reporting is the reporting of the financial results of any period which is lesser than a fiscal year, thus interim periods are accounting time periods which are generally less than one year in duration, such as a month, a quarter, or a semi-annual period.

ekkarill92 answered 1 year ago

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