Interim financial information is intended to provide users with timely information about a reporting entity. Because each interim period is an integral part of an annual period, interim financial statements are generally prepared based on the expectation that users will read the interim financial statements in conjunction with the annual financial statements. In general, interim financial information is not expected to repeat annual financial information but, rather, provide an update from the prior year-end. Therefore, interim financial information may be condensed and include limited footnote disclosures.

ASC 270, Interim Reporting, and Article 10 of Regulation S-X (“Article 10”) are the two primary sources for presentation and disclosure requirements for interim financial reporting. ASC 270 provides minimum disclosure requirements for all reporting entities that prepare interim financial statements. Article 10 provides reporting requirements for SEC registrants, including the financial statements that should be presented and the periods that should be covered by each respective financial statement.

Certain other guidance includes considerations for interim financial reporting; the more significant guidance is discussed in this chapter.

The FASB has an active project on interim reporting that may affect interim presentation and disclosure requirements. Financial statement preparers and other users of this publication are, therefore, encouraged to monitor the status of the project. Once finalized, financial statement preparers and users should evaluate the effective date of the new guidance and the implications on presentation and disclosure.