Final answer:
True, comprehensive income must be reported in interim financial statements as it provides a complete picture of financial performance, including all changes in equity except those from investments by or distributions to owners.
Step-by-step explanation:
Comprehensive income must indeed be reported in interim financial statements according to the accounting standards such as the International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP). Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. In an interim period reporting, entities are required to present comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements wherein one displays the components of net income and the other displays the components of other comprehensive income. This is essential as it provides a complete picture of the financial performance for the period, which includes not only net income but also items that are not realized through the income statement, such as unrealized gains or losses on financial assets and foreign currency translation adjustments.