Interim Reports: When Must They Be Reported?

Periodic financial statements called interim reports are released to give an update on a company’s financial situation. Depending on the company’s discretion, they are typically provided every quarter or every six months. In particular between annual reports, the major goal of interim reports is to keep stakeholders and investors up to date on a company’s financial performance. But are interim reports audited and when must they be reported? These are a few of the queries that stakeholders and investors frequently ask. When are interim reports required to be submitted?

Regular reporting periods, often every quarter or every six months, are required for interim reports. The rules of the stock exchange where the company is listed determine the precise reporting requirements. For instance, the Securities and Exchange Commission (SEC) requires corporations with NYSE listings to submit quarterly reports (Form 10-Q). Within 45 days of the conclusion of each quarter, these reports must be submitted. Similar requirements apply to companies listed on the London Stock Exchange (LSE), which have two months from the end of the period to publish interim results. Interim Reports: Are They Audited?

External auditors typically evaluate interim reports, but they are not as thoroughly inspected as annual reports. This is due to the fact that interim reports are less thorough and cover a shorter time frame than yearly reports. To guarantee the accuracy and completeness of the information contained in the interim report, the external auditors may, nevertheless, undertake a limited number of procedures. Typically, the notes to the interim report make clear the extent of the auditor’s review.

An interim report’s table of contents should include a list of any attachments it contains, such as financial statements, notes to the financial statements, or management discussion and analysis. The name of the attachment and the page number where it may be located should both be included in the list. Additionally, each attachment should have a title that accurately describes its contents and is both clear and descriptive.

To make it simple for readers to get the information they require, attachments should be applied logically and in an ordered manner. So that readers may compare the outcomes, financial statements, for instance, should be presented in a consistent manner from one period to the next. The relevant line item in the financial statements should be cross-referenced in the notes to the financial statements as well. The major financial and non-financial data important to the success of the company should be covered in a thorough and logical manner by the management discussion and analysis.

An attachment should be clearly defined by its title or description and the date of the document whenever it is included in a legal document, such as a contract or agreement. The document’s legal attachment and content should both make reference to the attachment. Exhibit A, which is attached to this agreement, contains the company’s financial statements for the three months ended March 31, 2021, for example. This clarifies which attachment is being discussed as well as its location.

Interim reports are crucial tools for informing stakeholders and investors about a company’s financial performance. Depending on the rules of the stock exchange, they must be published at regular periods, typically every quarter or every six months. External auditors typically evaluate interim reports, but they are not as thoroughly inspected as annual reports. To make it simple for readers to get the information they need, attachments should be displayed and used in a logical manner. An attachment shall be specifically recognized by its title or description and the document’s date whenever it is mentioned in a legal document.