Abstract

Interim reports are summary statements that are usually prepared in semi-annual format in the UK. Until theEU’s Transparency Directive was put into practice in the UK in 2007, there was no legal necessity forcompanies to provide interim financial reports. (Note 1) Instead such preparation was only a regulatoryrequirement of the London Stock Exchange. The responsibility on companies listed on the London StockExchange to provide these financial reports was first prepared as an suggestion in 1964, to meet therequirements for updates by financial analysts (May, 1971). In 1973, this advice to provide the market withinterim information became a requirement for the admission of stocks and securities to be listed on the stockExchange (Lunt, 1982). This study investigates the preparation of interim reports, and accounting standards forinterim reporting. Also, this study discusses the main purpose of interim reports, the methods of preparation andthe benefits of reporting frequency.

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