IQ tests are normed according to age. This means that when the test was first designed, it was administered to a group of children of different ages. Within each age group, this gives a normal distribution of scores (looks like a bell curve.) The scores were assigned so that "average IQ" would have a standard score of 100.
When your child takes an IQ test, her score is compared with the scores of the norming group for her age. So she would be compared with kids of all abilities in her age group. You would get a standard score (the IQ score) and a percentile ranking which shows the percentage of kids your daughter's age who scored below her.