Practical examples of notes to interim financial statements

Real‑world examples of notes to interim financial statements

Interim reports live in a gray zone: they must be condensed, but still give investors enough context to understand performance between annual periods. That’s why strong notes matter, and why finance teams keep looking for examples of notes to interim financial statements that go beyond generic wording.

Below, I walk through practical scenarios and give narrative-style examples you can adapt. Think of these as best examples drawn from how public companies actually write their quarterlies under IFRS and U.S. GAAP.

Revenue and seasonality: example of a clear interim disclosure

One of the most common examples of notes to interim financial statements is a revenue note explaining seasonality and year‑to‑date patterns.

Illustrative wording:

Note 3 – Revenue and Seasonality
The Group generates a significant portion of annual revenue in the fourth quarter due to holiday‑related consumer demand. Revenue for the three months ended March 31, 2025, was \(485.2 million (2024: \)452.7 million), representing 21% (2024: 20%) of full‑year 2024 revenue. Management expects the distribution of revenue across quarters in 2025 to be broadly consistent with prior years.

No material changes were made to the Group’s performance obligations, contract terms, or variable consideration estimates during the three‑month period. Contract liabilities (deferred revenue) increased from \(96.4 million at December 31, 2024, to \)104.9 million at March 31, 2025, primarily due to growth in annual software subscriptions.

Why this works:

• It quantifies seasonality instead of just saying “our business is seasonal.”
• It calls out changes in contract liabilities, which investors watch closely for SaaS and subscription models.
• It focuses on what changed since year‑end, which is exactly what interim users care about.

If you’re searching for examples of examples of notes to interim financial statements on revenue, pay attention to how companies tie quarterly performance back to full‑year patterns and prior‑year quarters rather than drowning readers in policy boilerplate.

Significant estimates and judgments: best examples under 2024–2025 volatility

Interim reporting leans heavily on estimates. With ongoing inflation, higher interest rates, and continued geopolitical tension, the best examples of interim notes in 2024–2025 are very explicit about how assumptions moved.

Illustrative wording:

Note 4 – Significant Accounting Estimates and Judgments
The preparation of these interim condensed consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities.

Key estimates updated during the three months ended June 30, 2025, relate to:
• Expected credit losses on trade receivables – Higher interest rates and slower customer payment patterns in certain European markets led to an increase in the lifetime expected credit loss rate from 2.1% at December 31, 2024, to 2.8% at June 30, 2025. The resulting additional expense recognized in the period was $4.6 million.
• Inventory obsolescence – Demand for certain consumer electronics products declined faster than anticipated. Management increased the obsolescence provision by $7.3 million, reflecting updated sales forecasts through December 2025.
• Discount rates for impairment testing – The Group adjusted discount rates used in impairment models to reflect current market yields on high‑quality corporate bonds, consistent with external economic data published by central banks and international organizations.

This kind of note is a textbook example of how to link macroeconomic conditions to concrete changes in estimates. It also quietly signals to regulators that management is paying attention to the environment, not just rolling forward old assumptions.

For background on why estimates matter so much in interim periods, the SEC’s guidance on MD&A and disclosure of critical accounting estimates is a useful reference point: https://www.sec.gov/corpfin/cf-manual/topic-9-md-and-a

Business combinations and disposals: examples include step acquisitions and carve‑outs

Another strong example of notes to interim financial statements is the acquisition or disposal note. Deals often close mid‑year, and investors want to know how much of the quarter’s performance is inorganic.

Illustrative wording:

Note 5 – Business Combination
On May 15, 2025, the Company acquired 100% of the outstanding shares of Alpha Analytics Inc., a U.S.‑based provider of cloud‑based data analytics solutions, for total consideration of $182.4 million, net of cash acquired. The acquisition expands the Company’s presence in North America and enhances its product portfolio.

The transaction has been accounted for as a business combination using the acquisition method. The preliminary allocation of the purchase price, based on management’s current estimates, is as follows (in millions):
• Identifiable intangible assets (customer relationships and developed technology): $96.0
• Property and equipment: $12.5
• Deferred tax liabilities: $(21.3)
• Other net assets: $18.7
• Goodwill: $76.5

The results of Alpha Analytics Inc. have been included in the interim condensed consolidated statement of income from May 15, 2025. For the period from acquisition date to June 30, 2025, Alpha Analytics Inc. contributed revenue of \(14.2 million and a net loss of \)1.9 million, primarily due to acquisition‑related integration costs.

This is one of the better examples of interim disclosure because it:

• Flags that the purchase price allocation is preliminary.
• Quantifies the acquired business’s revenue and profit since acquisition.
• Explains why the acquired business is currently loss‑making.

For disposals or carve‑outs, examples include:

• Summarizing gain/loss on sale.
• Explaining whether the business is treated as discontinued operations.
• Highlighting any continuing involvement, like transition services.

Restructuring, layoffs, and cost‑saving programs: timely 2024–2025 examples

With tech and consumer companies still announcing restructuring plans in 2024–2025, investors expect detailed interim notes on these actions.

Illustrative wording:

Note 6 – Restructuring and Cost Optimization Program
In February 2025, the Company announced a restructuring program aimed at simplifying its organizational structure and reducing operating expenses. The program includes workforce reductions, consolidation of office locations, and the rationalization of certain product lines.

During the three months ended March 31, 2025, the Company recognized restructuring charges of $38.7 million, comprising:
• Employee severance and related benefits: $27.4 million
• Lease termination and facility closure costs: $8.9 million
• Other associated costs: $2.4 million

As of March 31, 2025, the restructuring liability totaled \(24.1 million (December 31, 2024: \)0), of which \(18.5 million is expected to be settled in cash within the next 12 months. Management expects the program to be substantially completed by December 31, 2025, and to generate annualized cost savings of approximately \)60 million from 2026 onward.

This note is a clean example of how to bridge charges, cash impact, and future savings without over‑promising. Regulators and investors have been increasingly vocal about vague restructuring disclosures, so this kind of clarity is no longer optional.

Liquidity, debt covenants, and going concern: examples of transparent risk disclosure

In a higher‑rate world, interim notes about liquidity and covenants are getting more scrutiny. Strong examples of notes to interim financial statements don’t wait until there’s a default; they explain near‑misses and refinancing plans early.

Illustrative wording:

Note 7 – Liquidity and Borrowings
At June 30, 2025, the Group had total borrowings of \(1,245.6 million (December 31, 2024: \)1,198.3 million) and cash and cash equivalents of \(164.2 million (December 31, 2024: \)192.7 million). The increase in borrowings reflects drawdowns under the Group’s revolving credit facility to fund seasonal working capital.

The Group’s principal syndicated loan facility requires compliance with a net debt to EBITDA ratio not exceeding 3.5x, tested semi‑annually. At June 30, 2025, the ratio was 3.3x (December 31, 2024: 2.9x). While the Group remains in compliance, the headroom has decreased due to lower EBITDA in the first half of 2025.

Management has initiated discussions with lenders to extend the maturity of the revolving credit facility from 2026 to 2028 and to adjust certain covenant thresholds. Based on current forecasts and available mitigating actions, the Directors believe that the Group has adequate resources to continue in operational existence for at least 12 months from the date of approval of these interim financial statements.

This kind of note is a strong example of how to balance transparency with reassurance. It acknowledges tightening headroom, outlines actions, and supports the going‑concern conclusion.

For more background on going‑concern evaluations and disclosure expectations, the PCAOB’s guidance on auditing standards related to going concern is helpful: https://pcaobus.org/oversight/standards/auditing-standards/details/AS-2415

Fair value measurements and financial instruments: examples include Level 3 updates

Market volatility and higher rates mean fair value disclosures are no longer a sleepy back‑section. The better examples of examples of notes to interim financial statements on fair value do three things:

• Reconcile Level 3 movements.
• Explain valuation techniques.
• Call out any transfers between levels.

Illustrative wording:

Note 8 – Fair Value Measurement of Financial Instruments
The Group’s financial instruments measured at fair value on a recurring basis include derivative financial instruments (Level 2) and unquoted equity investments (Level 3).

There were no transfers between Levels 1, 2, and 3 during the six months ended June 30, 2025. The following table summarizes the movement in Level 3 instruments during the period (in millions): opening balance of \(42.7, unrealized gains recognized in other comprehensive income of \)3.1, purchases of \(2.0, and closing balance of \)47.8.

Fair value of Level 3 instruments is determined using discounted cash flow models based on management’s forecasts of future cash flows and discount rates ranging from 10.5% to 12.0% (December 31, 2024: 9.8% to 11.3%). The increase in discount rates reflects updated market data on risk‑free rates and equity risk premiums.

This is a good example of how to update assumptions in an interim period without repeating the full annual valuation methodology.

For conceptual support on fair value and financial reporting, the IFRS Foundation and FASB provide extensive materials; the IFRS site is a good starting point: https://www.ifrs.org

Segment reporting and non‑GAAP metrics: examples of investor‑focused notes

Investors often read segment information before they read the income statement. So, examples of notes to interim financial statements that handle segment changes cleanly are worth studying.

Illustrative wording:

Note 9 – Segment Information
Effective January 1, 2025, the Group revised its reportable segments to align with a new internal reporting structure. The previous three reportable segments (Consumer, Enterprise, and Services) have been reorganized into two segments: Platform Solutions and Managed Services.

Comparative segment information for the three and six months ended June 30, 2024, has been restated to conform to the current period presentation. Segment performance is evaluated based on adjusted EBITDA, which excludes share‑based compensation, restructuring charges, and acquisition‑related costs.

For the six months ended June 30, 2025, Platform Solutions reported revenue of \(612.5 million and adjusted EBITDA of \)148.3 million, while Managed Services reported revenue of \(398.7 million and adjusted EBITDA of \)62.1 million.

This is a strong example of how to:

• Describe a segment change.
• Explain the performance measure used.
• Restate comparatives, which is a frequent pain point in practice.

Regulators, including the SEC, have published comment letter trends around segment reporting and non‑GAAP measures, reinforcing the need for precise explanations. The SEC’s financial reporting manual is a useful reference: https://www.sec.gov/corpfin/cf-manual

Contingencies, legal matters, and regulatory investigations: examples include data privacy and ESG

Legal and regulatory issues increasingly hit the headlines mid‑year. Strong examples of notes to interim financial statements in this area walk a fine line between transparency and legal risk.

Illustrative wording:

Note 10 – Contingencies and Legal Proceedings
The Company is subject to various legal and regulatory proceedings arising in the normal course of business, including matters related to data privacy, intellectual property, and employment practices.

During the six months ended June 30, 2025, a European data protection authority issued a statement of objections relating to certain historical data processing activities of the Company. Based on current information and legal advice, management believes that an outflow of economic benefits is probable and has recognized a provision of $18.0 million as of June 30, 2025. Due to the early stage of the proceedings and inherent uncertainties, additional penalties or remediation costs may arise; however, management is currently unable to estimate a reasonably possible range of additional losses.

This is a realistic example of how to acknowledge an investigation, record a provision, and still admit that the range of outcomes is uncertain.

Pulling it together: how to use these examples in your own interim notes

If you’re working through your own interim report and looking for examples of examples of notes to interim financial statements you can adapt, a few practical guidelines emerge from the scenarios above:

• Focus on what changed since year‑end: new estimates, new risks, new deals, new structures.
• Quantify wherever possible: headroom, severance, acquisition contributions, fair value movements.
• Tie your narrative to the macro environment: interest rates, inflation, labor markets, and regulatory trends.
• Avoid repeating your annual accounting policies unless there’s a change; link back to the last annual report instead.
• Think like a user: ask what an informed investor or lender would reasonably want to know about this quarter’s performance and risk profile.

Used thoughtfully, these examples of notes to interim financial statements can sharpen your disclosures and reduce the back‑and‑forth with auditors, audit committees, and regulators.

FAQ: examples of interim financial statement notes

Q1. What are common examples of notes to interim financial statements?
Common examples include notes on revenue and seasonality, significant estimates and judgments, business combinations and disposals, restructuring programs, liquidity and covenants, fair value measurements, segment information, and contingencies or legal matters. Many companies also include updates on tax rates, share‑based payments, and subsequent events.

Q2. Can I reuse my annual notes, or do I need separate examples of interim disclosures?
You can reference your annual accounting policies, but interim notes should be tailored to the period. The better examples of interim disclosures focus on changes and new information rather than repeating the full annual note set. Standards like IAS 34 and ASC 270 are explicit that interim reports are an update, not a standalone encyclopedia.

Q3. What is an example of a good interim liquidity note in a high‑rate environment?
A good example of a liquidity note explains changes in debt levels, covenant headroom, refinancing plans, and management’s going‑concern assessment. It quantifies net debt, explains movements since year‑end, and describes any discussions with lenders, rather than just stating that “the company believes it has sufficient liquidity.”

Q4. How detailed should interim notes be compared with annual notes?
Interim notes are typically shorter, but not shallow. Strong examples of notes to interim financial statements show enough detail for users to understand performance and risk for the period, especially for areas like impairments, restructurings, and major transactions. If an item is material to the quarter or half‑year, it usually deserves more than a single line.

Q5. Where can I find real examples of interim financial statement notes from public companies?
Look at quarterly or half‑year filings on platforms like EDGAR for U.S. companies, or stock exchange websites for IFRS reporters. Search for Form 10‑Q (U.S. GAAP) or half‑year reports (IFRS) from companies in your industry and size range. These filings provide real examples that show current practice, language, and regulator‑tested disclosure patterns.