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Interim reporting is an important aspect of the financial reporting process. Our discussion brief advocates that the choices management and directors consider for interim reporting should be regarded as strategic matters.
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Interim reports improve stakeholders’ ability to understand an organization’s capacity to generate earnings and cash flows as well as its financial condition and liquidity.
Chartered Professional Accountants of Canada (CPA Canada)’s Canadian Performance Reporting Board (CPRB) prepared the discussion brief, Interim Reporting Strategies in partnership with the Canadian Investor Relations Institute (CIRI), to help management and directors decide what to report on an interim basis.
The brief is primarily based on a review of 27 companies’ 2012 third quarter and annual financial statements and MD&A, supplemented by discussions with analysts and research of relevant material. The sample included TSX and TSX-V listed Canadian companies with market capitalizations of $1 million to $74 billion.
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