Interim Statement
Categories: Accounting
Think of it like the Terry Bradshaw halftime recap of the game.
Official financial statements cover a single year. However, investors and managers can’t just fly blind between annual reports. The CEO doesn’t want to turn to her chief accountant in July and ask, “so how have we been doing?” and have the accountant head-shrug and reply “ask me in January.”
As such, the company will prepare interim statements. These compilations of financial information cover periods of less than a year.
While they're prepared with rigor in order to provide the best possible information, they don't have to follow all the checks necessary for the official annual report. For example, the interim statements generally don’t have to be audited.
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Finance: What are a 10K and 10Q?57 Views
finance a la shmoop what are 10K and 10Q filings well as the pros say 10Q
very much yeah you know we had to go there sorry well they're just filings a [Girl filing her fingernails]
different kind of filings legal filings papers or data
well the 10K is the annual report and the 10Q is the quarterly report their
note the Q in there yeah very clever naming their people well we have no idea
why the K is there like shouldn't it have been a 10A fling equals annual
anyway the filings contain the key elements that report to shareholders the [Man giving presentation to shareholders]
progress or lack thereof that the company has made in the period it's
reporting and these apply to public companies people privates don't
necessarily file... well the K the Q have to contain an updated income statement [Income statement, balance sheet and cash flow statement appear]
balance sheet and cash flow statement along with tons of notes on whatever
business metrics the company regularly reports the number of people made sick
by the lemonade the number a coal miner Barbies sold the number of Disney cruise
passengers infected with Legionnaires disease and so on and if you're the CEO [Person puking off the edge of a cruise ship]
or CFO of the company and you don't get your filings in on time well you'll be
doing a different kind of filing so yeah 10K, 10Q they're really important
don't ignore them...