What may be a necessary practice for timely issuance of financial reports?

Timely issuance of financial reports is often contingent on the ability to make estimates when necessary. This practice allows organizations to move forward with reporting even when all precise information is not yet available. For instance, certain figures such as revenues or expenses may be subject to estimation based on prior trends, expectations, or partial data. By utilizing estimates, organizations can provide stakeholders with timely financial information rather than delaying the reporting process until all details are finalized.

Other practices, such as conducting thorough audits or meticulously completing all estimates, while important, may not directly facilitate timeliness in reporting. In some cases, waiting for all information to compile could lead to significant delays, which defeats the purpose of providing timely financial updates to decision-makers and stakeholders. Hence, making estimates when required is essential for ensuring that financial reports are issued on time while still maintaining a level of accuracy and reliability.