A financial statement (FS) that lays out a minimum content for interim financial reporting requirements. This is meant to provide a quick overview of an entity’s financial status. Along with a set of statements, it covers the current “interim” period and comparative “interim” prior period information (and hence it is not a complete or full statement). Interim periods usually have their own financial reports that may be a complete or condensed set of financial statements for a period shorter than a financial year.

A condensed financial statement includes a summary of information that a complete statement presents in detail. Furthermore, condensed statements exclude certain pieces of information. The condensed statements will still project the basic information about an entity’s retained earnings, income and cash flows. However, in the condensed financial statements each item will be laid out with less details, and without setting out most of the disclosures found in the complete financial statements.

The set of condensed financial statements are statement of financial position (SFP), statement of comprehensive income, statement of cash flows, statement of changes in equity, and selected explanatory notes. Generally, information provided in the entity’s most recent annual report is not presented again or updated in the interim report. The interim report rather covers changes brought about and observed since the end of the last annual reporting period, and hence it is specific and relevant only to the respective reporting period (first quarter or first half, etc.)

In condensed financial statements, assets and liabilities are recognized and measured for interim reporting using the information available on a year-to-date basis. For practical reasons, the preparation of condensed financial reports generally capitalizes more on estimation methods as compared to complete or full financial statements.

Typically, a condensed financial statement will include one line for revenues, cost of goods sold, expenses, financing income and net income, which should match the total currency amount for each subcategory appearing on the complete financial statement.