ACCA Strategic Business Reporting (SBR) Practice Exam

Interim financial reports are designed to provide users with timely financial information that reflects the financial position and performance of a company within a specific interim period, typically shorter than a full financial year. The correct choice highlights that interim financial reports must include a condensed version of financial statements. This allows for a summary view that focuses on key figures rather than a detailed analysis like that found in audited annual reports.

Condensed financial statements typically include fewer line items and provide essential information that can be quickly reviewed by stakeholders. This includes the income statement, balance sheet, and cash flow statement, presented in a streamlined manner. Such format ensures that users receive relevant and updated data without overwhelming detail, facilitating informed decision-making and analysis, especially as the financial landscape can change rapidly over shorter reporting periods.

The other options suggest requirements that do not align with the purpose and format of interim reports. For instance, a complete set of audited financial statements is not required for interim reports, as these are prepared annually and entail a thorough audit process. Furthermore, annual financial statements, which provide comprehensive data over the full financial year, would not meet the demand for timely information specific to interim periods. Lastly, while narrative reports and future projections may be beneficial as supplementary information, they are not a mandated inclusion