Need for interim financial statement:

1. To provide stakeholders with up-to-date information about the company's financial performance and position. This is especially useful for investors and creditors who may need to make decisions based on the company's current financial situation.
2. To help the company monitor its financial performance and identify trends or issues that need to be addressed.
3. To meet the needs of external stakeholders, such as banks and other lenders, who may require periodic financial statements as a condition of lending.

Components of Interim Financial Statement:

In addition to these three primary financial statements, they may also include other disclosures and information, such as a statement of changes in equity or a statement of comprehensive income. The specific information included in the statement will depend on the company and the requirements of the financial reporting framework being used.

Methods of Preparing Interim Financial Statements

There are two main methods of preparing statements: the full accrual method and the modified accrual method.

• Full accrual method: This method is similar to the method used to prepare annual financial statements. It involves recognizing all revenues and expenses that are earned or incurred during the interim period, regardless of whether cash has been received or paid. This method provides a more accurate representation of the company's financial performance and position, but it may require more work and resources to prepare.
• Modified accrual method: This method is simpler and less costly to implement than the full accrual method. It involves recognizing revenues when they are earned and reasonably assured of being collected and recognizing expenses when they are incurred and payable. This method is commonly used for interim financial statements in smaller companies or in situations where the full accrual method would be too burdensome.

Both the full accrual method and the modified accrual method are acceptable methods of preparing interim financial statements, as long as they are applied consistently from one interim period to the next. The method chosen should be disclosed in the financial statements.

Benefits of Interim Financial Statement

1. They provide up-to-date information about a company's financial performance and position, which is useful for stakeholders such as investors, creditors, and management.
2. They allow the company to monitor its financial performance and identify trends or issues that need to be addressed.
3. They help external stakeholders, such as banks and other lenders, assess the company's financial health and make informed decisions.

Overall, it provide valuable information that can be used to make informed business decisions and assess the financial health of a company.

Resurgent India Limited

Resurgent India Limited is a financial advisory firm that is registered with (SEBI) as a Category I Merchant Bank. We provide a variety of services including mergers and acquisitions, private equity, debt solutions, structured finance, capital market solutions, transaction advisory, valuations, enterprise risk management, tax services, and training.

Resurgent India Limited is led by a strong and professional team of advisors who are able to provide expert guidance to clients in various areas of finance. Our focus is on debt, equity, and transaction advisory services. We use a research-driven approach to provide high-quality services. Our platform in India offers a full range of services, operates globally and follows the highest standards of governance. We are known for our sophisticated products and services.