Interim financial statements
Interim financial statements cover part of a fiscal year, such as a month, a quarter or a half-year, rather than the full year. BDC notes they are most often prepared internally and sometimes include fewer components than year-end statements.
BDC says companies may prepare interim statements monthly, quarterly or semi-annually, between year-ends. It notes that banks can ask for interim financial statements prepared internally to understand a business’s recent economic situation, and that a reporting requirement may call for documents such as an interim balance sheet and income statement. A buyer may therefore see older year-end statements next to a more recent interim set. See what buyers look for in your financials.
What to ask
- Which period the statements cover and the date they were prepared.
- Who prepared them. BDC says they are most often prepared internally, so ask whether anyone outside the business has reviewed them.
- Which components are included, since BDC notes interim sets may include fewer than year-end statements. A statement of cash flows is one to look for.
- How the latest period compares with the same period a year earlier. BDC’s inventory financing article says that for larger loans, interim statements comparing the latest period with the same period of the previous year are needed.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are financial statements?
- 02Business Development Bank of CanadaGovernmentHow to get a business loan in Canada
- 03Business Development Bank of CanadaGovernmentInventory financing: What it is and how it works
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