Understanding scope of Interim Financial Statements

 

What is an Interim Statement?

An interim financial statement or an interim financial report, is a detailed report of accounting, which covers all the business activities within less than one financial year. Usually, companies generate interim reports/ statements on the basis of monthly, quarterly, semi-annually, or at any other time duration within one year.



Conclusion:


In comparison to the annual statement, there might be some foundational differences between the two. But the use, relevance and impact of an interim financial statement is no less. It is equally important in the decision-making of the company and its shareholders. Many interim financial reporting services ensure that the above aspects are well taken care of.


Original source: https://www.resurgentindia.com/understanding-scope-of-interim-financial-statements

Comments

Post a Comment

Popular posts from this blog

Here is Everything You Must Know About Private Equity Companies

Image
Handling a start-up or an established business   is not as easy as it looks. Everything from managing the employees to earning profits is looked taken care of by the management. If you have a business idea and are looking for wealthy individuals to invest money in your business, you should look out for private equity firms. The managers of the  private equity  companies  get fees as well as 20 percent of the gross profit. The equity purchases the company through auction. The firm surges the company's value by upgrading its account system or introducing information technology or unprofitable closing areas of the business. Once the condition of the firm becomes better, it is sold off to large corporations. At times the efforts to fix the company fails, which results in bankruptcy. Although the company earns huge rewards at the same time, it is a risky business. What makes it so controversial? At times , private equity companies  play the strategies often performed...
Read more

Long Term Project Finance Mechanism: Need For A Re-look

Image
  The long-term   Project Finance   for infrastructure and industrial sectors essentially involves a limited recourse to financial structure, since project debt and equity utilized for constructing the project are paid back from the cash flows generated by the project itself. This implies financial engineering of lending, solely against the cash flows of the project, not relying upon any other securities. A detailed evaluation and thorough analysis of the various risks involved are undertaken and the mitigation steps are identified for the prospective lenders, promoters, and other parties involved. The term loans for large projects are generally repayable in up to 20-25 years depending upon the economic life of the project, after the initial moratorium during the gestation period. The current unprecedented situation arising out of covid-19 disruptions and responses from the regulators has provided us with a lot of learning inputs, necessitating a re-look at the funding me...
Read more

Loan Syndication : A Complete Overview

Image
  Loan syndication   refers to the process where multiple lenders come together to fund various portions of the loan asked by a single borrower. The process is majorly done when the amount is very large for a single lender or when the risk exposure levels are quite high. Therefore, multiple lenders form an association or syndicate to fund the requested capital. The borrower can be a corporate entity, government or an individual project. In corporate financing, loan syndication process is often used for diverse business reasons like project financing, mergers, acquisitions, buyouts, etc. where huge amount of capital is required and is normally outside the resource capacity of a single lender. Each lender’s liability/rights is only limited to the amount of their share of the total loan amount. In the process of  loan syndication,  one lender acts as a manager or arranging bank on the behalf of other lenders who administers the loan. The agreements between the lenders a...
Read more