Interim financial reports
In one sentenceFinancial statements prepared for a period shorter than a full fiscal year, such as a quarter or half year, with condensed statements and selected notes.
Simply put
They give owners and banks a picture of performance before the year ends. The business follows the same accounting policies applied in the annual statements (under IAS 34).
Selected notes that focus on what has changed since the last annual statements are enough, so not every detail is repeated.
Example
A company obtained financing for which the bank requires quarterly reports. After each quarter the accountant prepares a financial position and an income statement for the quarter and for the year to date, with notes on any significant change such as a new loan or the sale of a branch.
Don't confuse it with
Financial statementsThe annual statements have full notes and cover a year, while interim reports are condensed and cover part of it.