Interim Financial Statements | Features | Importance - YouTube

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clicking the bell icon today we have a topic with us is interim financial

statements just like there are there are full financial statement there is

interim financial statement interim means no financial statement that are

prepared in the middle of the year so there must be some reason behind why it

is prepared in the middle of the you know see there's one dialogue box I want

you guys to read this the report in December 14 a report in the Japanese

version was filed with the director of Kanto local finance Bureau of the

Ministry of finance pursuant into the financial instrument an exchange of

Japan we just go down there is a consolidation balance sheet details that

are given for interim financial statement no issues we will try and understand this in

a detailed manner first and foremost thing I want you to understand what are

exactly interim financial statement okay this is the first thing that you should

actually learn see financial statement that accounts for a period for less than

let's say 1 year for less than one year they are termed as interim

financial state now publicly held companies must issue this financial

statement at publicly companies okay not not others they should issue at

quarterly basis no that is my must now this concept is most common applied to

such companies the purpose is to provide the other users of the and the investors

updated information on the corporate corporations operations second to get

time liners what we call as into the business operation instead of the

waiting till the end of the accounting period and are not available for long

after the financial year close now while allocating the investment

capital investors find periodic snapshots which eventually leads to

greater liquidity now there are some features that you should learn of

interim financial reporting see the concept of the interim financial

reporting can be applied to any term of the period such as like you know last 7

years 7 months 5 months right so as of a specific point in time

such kind of financial statement only refers to equity assets liabilities the

interim concept you note it does not apply to balance sheet rather than over

the period of time so as the contains same document interim financial

statement are similar to annual financial statement remember there's no

the ones found in the annual financial statement will also match the line items

appearing in the interim financial statement now the primary difference

that can be found in the area discussed is what we call as disclosure now

disclosure of the few forms are not required in the interim financial

statement or can be represented in the format which are more summarized second

is accrual basis so accrued expense can be very and very with within the interim

financial period like for example an expense recognition may be spread across

multiple periods or could be recorded entirely with one reporting period third

is called the seasonality now seasonality is what impacts the revenue

generated by the business significant interim statement may reveal period of

major losses and profits in such cases which are not at all evident in the

financial statements third are interim financial statements audited that is a

question here given the cost and time that is required

for an audit and the requirement of the financial information mostly interim

financial statement are not audited in bold and are also very much condensed

okay only the year and valuation or the year in

financial statements are audited okay and not the we call as the interim

financial statement so its quarterly financial statements are instead it's

called review in India it is called as the clause 41 of listing agreement which

specifically specifies things about review that ins of quarterly statements

that have been done and are much reduced from the employed in the audit so it it

is combust by the review therefore it

becomes important to read complete and previously issued annual financial

statements and reports so it is very essential that the accounting practices

in this statements must be what we call as regular with the accounting practices

which would be followed in the annual financial statement in order for the

interim statements amounts to add up with the amounts reported in the

official income statement for the year okay

now let's understand the importance part of the interim financial statements okay

see now we will discuss few other important concepts of interim financial

reporting like IAS 34 the IAS 34 interim financial reporting requires

that the interim financial statement either should be condensed or complete

shall include couple of things like as at the end of the current interim period

a statement of financial position and as at the end immediately preceding

differentially a comparative statement of financial position second two

separate statement one being a profit and loss statement and another being

comprehensive income cumulative for the current financial year to date with the

competitors for the comparable interim periods or probably a single profit and

loss statement and another comprehensive income statement for the current interim

interim period and cumulatively for the year-to-date that's called YTD here -

the changes in equity showing in the equity cumulative list rate so all of the

details has to be mentioned now for the current financial to date that's called

the YTD current financially a statement of cash flow with comparative statement

for the comparable year-to-date period of the previous immediate financial year

has to be presented so in order to report the financial performance of the

financial company the interim financial statement are applied before the

beginning of the fiscal year before the beginning

of the fiscal year and at the end of the fiscal year right now the series of the

condensed statements are also included in the statement which are helpful in

covering the status of the company and the economic position so the position of

the company's financial status income mechanism of cash flow and other related

changes are many of the attributes included in this particular thing so let

me make my conclusion on this the conclusion goes that you know a public

financial report covering a period of let's say less than 1 year is what

differential interim financial statements are basically all about there

are common examples of interim statements may be a simple quarterly

statement a simple it's gonna be a simple quarterly statement out of the

6 month financial report interim financial statement they do not they are

not at all audited okay however by providing the latest

information through this interim financial reporting the companies are

able to timely communicate their financial performance to the investor

and the financial analysts that's it for this particular topic if you have

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