Small as well as large organizations generate financial statements periodically for assessing their financial position and outcomes of operations. Generally, accounting periods are a quarter, a month, or a year. Quarterly and monthly time periods are known as interim periods.
Most large organizations must generate quarterly as well as annual financial statements. An accounting period with the length of one year is known as a fiscal year. A fiscal year generally, starts with the 1st day of a month and ends after 12 months on the last day of that month.
Interim periods are financial reporting periods that are shorter than a whole fiscal year. Generally, interim financial reports are quarterly financial reports needed for many entities whose equity securities or debt securities are traded publicly. Interim periods are also regarded as the standard monthly period that most companies use while preparing their financial reports.
Use of the term in Sentences:
- The professor is discussing the interim periods and fiscal year in the accounting class.
- The students were asked to differentiate between interim periods and fiscal year.
- Organizations use interim periods and fiscal year according to their convenience when financial reporting.