Interim period definition
/What is an Interim Period?
An interim period is a financial reporting period that is shorter than a full fiscal year. Interim financial reports are generally quarterly financial reports that are required for any entities whose debt securities or equity securities are publicly traded. Depending on which securities regulator or stock exchange is involved, an entity will be required at least to issue interim financial reports at the end of the first half of its fiscal year, and to do so no later than 60 days after the end of each interim period.
An interim period is also considered to be the standard monthly time period that most organizations use for their financial reporting.
Example of an Interim Period
As an example of interim periods, Milford Sound (maker of advanced audio equipment) has a fiscal year that aligns with the calendar year. This means than Milford’s fiscal year ends on December 31. The company is listed on the New York Stock Exchange, so it is required to also report its results for three interim periods, which are as follows:
Quarter 1, which is January 1 to March 31
Quarter 2, which is April 1 to June 30
Quarter 3, which is July 1 to August 31
Milford will issue a complete set of interim financial statements following the end of each of these interim periods, so that the investment community will have the most recent information about its financial results, financial position, and cash flows.
In addition, the company prepares annual financial statements that cover the entire fiscal year. This means that it includes the financial results and cash flows for the three interim periods that were already reported, plus this information for the fourth quarter, and its financial position as of the end of the reporting period.