Interim Financial Reporting: Concept and Regulatory Requirements

Abstract

The interim financial reporting has become a challenging task now-a-days. Interim financial statements increase communication between companies and the public, and provide investors with up-to-date information between annual reporting periods. Public disclosure of information, particularly in the interim period, needs to be regulated for its timeliness of presentation and for forecasting earning and share prices. In India, the Securities & Exchange Board of India (SEBI), the securities regulator, has directed stock exchanges to secure that companies listed on them comply with Clause 41 of the Listing agreement in preparation and presentation of interim financial results. In this paper an attempt has been made to investigate the conceptual issues and regulatory requirements of interim financial reporting. The study shows that in India, interim financial disclosure requirements have not been developed to such extent as required by market participants.

Keywords: Interim Financial Reporting, Clause 41 Listing Agreement, SEBI, Ind AS 34, IAS 34

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