The predictive power of interim financial reporting

Financial information users get the accurate, reliable and timely financial status of any company through financial statements. To get the information in appropriate time requires interim financial reports prepared less than one-year period. Through interim reporting, the results of the comparable interim reports allow improvements for the following interim and end-of-period. Consequently, projected values are successfully anticipated.In this study, accounting and financial statement concepts and their developments are explained. Then, the importance of interim reports and their impacts on system are covered. Finally, specific financial statement components are selected, and through interim period data, these subjects? values were tried to be predicted for the end-of-period.The analysis conducted with 209 manufacturing industry firms trading on the İstanbul Stock Exchange indicates that the values of specified financial statement components in the last interim report predict the annual values more accurately.