The ‘Interim-ness’ of Accounts

Abstract

Companies which last for many years need to account regularly, and quite frequently, to their owners. But ‘going concerns’ often have much unfinished business at the end of their financial year, which leads to a need for estimates in the accounts, and it can be difficult to allocate income and expenses between accounting periods. Moreover the shorter the accounting period, the larger the proportionate margin of error in reported profit or loss.