Is it necessary for all information concerning financial condition to be available before completing financial reports?

The necessity of having all information concerning financial condition available before completing financial reports is not absolute. Estimates and projections are commonly accepted practices in financial reporting, particularly when certain financial data may not be finalized yet. This means that while having complete and accurate information is desired for precision, it's also understood that in many cases, entities must rely on reasonable estimates to provide timely financial information.

In various financial reporting frameworks, such as GAAP or IFRS, it is recognized that certain figures can be approximated based on previous data, market analysis, or statistical methods when exact data isn't available. This allows organizations to still prepare and issue reports to meet deadlines, make informed decisions, and maintain transparency for stakeholders.

Timely financial reporting is crucial for decision-making within organizations and for external stakeholders, such as investors or regulatory bodies. Thus, the use of estimates helps in ensuring that entities can provide the necessary information without undue delay, aligning with the principle of relevance in financial reporting.