An accounting period, in book keeping, is the period with reference to which accounting books of any entity/company are prepared. An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements.
It is the period for which books are balanced and the financial statements are prepared. Generally, the accounting period consists of 12 months. However the beginning of the accounting period differs according to the jurisdiction. For example, one entity may follow the regular calendar year, i.e. January to December as the accounting year, while another entity may follow April to March as the accounting period.
The International Financial Reporting Standards allow a period of 52 weeks as an accounting period instead of a proper year.
An accounting period is the span of time covered by a set of financial statements. This period defines the time range over which business transactions are accumulated into financial statements, and is needed by investors so that they can compare the results of successive time periods. For internal financial reporting, an accounting period is generally considered to be one month. A few firms compile financial information in four-week increments, so that they have 13 accounting periods per year.
A publicly-held company must report to the Securities and Exchange Commission on a quarterly basis, so the accounting period for its financial reports to the SEC span three months. If a set of financial statements cover the results of an entire year, then the accounting period is one year. If the accounting period is for a twelve month period ending on a date other than December 31, then the accounting period is called a fiscal year, as opposed to a calendar year. For example, a fiscal year ended June 30 spans the period from July 1 of the preceding year to June 30 of the current year. Ideally, the fiscal year should end on a date when business activity is at a low point, so that there are fewer assets and liabilities to audit.
Yet another variation on the accounting period is when a business has just been started, so that its first accounting period may only span a few days. For example, if a business begins on January 17, its first monthly accounting period will only cover the period from January 17 to January 31. The same concept applies to a business that has been terminated. For example, if a business were to be shut down on January 10, its final monthly accounting period would only cover the period from January 1 to January 10.
Technically, an accounting period only applies to the income statement and statement of cash flows, since the balance sheet reports information as of a specific date. Thus, if an entity reports on its results for January, the header of the income statement says “for the month ended January 31,” while the header of the balance sheet states “as of January 31.”
Like!! Thank you for publishing this awesome article.
This piece of writing offers clear idea for the new users of blogging, that truly how to do blogging and site-building. Rozelle Fairfax Jayne
I actually wanted to write a word so as to thank you for some of the awesome points you are sharing at this site. My time consuming internet investigation has at the end been honored with high-quality details to talk about with my great friends. I ‘d declare that many of us readers are really fortunate to live in a perfect place with so many marvellous individuals with very helpful plans. I feel very fortunate to have encountered the site and look forward to so many more brilliant minutes reading here. Thanks a lot once again for a lot of things.
I wish to show my appreciation for your kind-heartedness in support of persons that actually need guidance on in this matter. Your real commitment to getting the solution all over was especially useful and have usually permitted girls much like me to achieve their objectives. Your amazing interesting guide entails much a person like me and further more to my office workers. Best wishes; from each one of us.
A lot of thanks for all your hard work on this site. My mum takes pleasure in doing research and it is easy to see why. We all learn all concerning the lively ways you produce helpful guidelines by means of this web site and as well inspire participation from the others on that article and my princess is certainly becoming educated a lot. Take advantage of the rest of the year. You’re doing a really good job.
I intended to compose you a very little word to give thanks the moment again for these lovely concepts you have shared on this site. This has been simply unbelievably generous of people like you to grant extensively what most of us would’ve offered for sale as an ebook to end up making some dough for themselves, certainly since you could have tried it in the event you decided. These basics likewise acted like the fantastic way to recognize that some people have similar fervor similar to my personal own to know the truth somewhat more around this condition. Certainly there are thousands of more pleasant opportunities in the future for folks who find out your site.
I enjoy you because of all your valuable effort on this site. My daughter loves working on investigations and it is easy to understand why. Many of us learn all relating to the powerful mode you deliver very helpful solutions through the web site and increase participation from website visitors on that area and our girl has been studying so much. Take pleasure in the rest of the new year. Your performing a remarkable job.
I and my guys came checking the excellent guidelines found on your web site and so then I got an awful suspicion I never expressed respect to the site owner for those strategies. My people were definitely totally very interested to read through them and now have honestly been loving them. Thanks for truly being considerably thoughtful and then for pick out this kind of awesome information millions of individuals are really wanting to learn about. My personal honest apologies for not saying thanks to earlier.
I needed to post you this little word to help give thanks again just for the striking guidelines you have shared on this website. It was simply shockingly open-handed with people like you to provide easily exactly what a number of people might have marketed as an e book to earn some bucks for themselves, particularly now that you could have done it if you ever decided. The pointers also worked like a easy way to be certain that other people online have the identical eagerness really like my personal own to find out lots more when it comes to this condition. I believe there are lots of more fun moments ahead for individuals who scan your blog.
I would like to express my passion for your generosity supporting all those that must have help on that field. Your special dedication to passing the message throughout became exceptionally productive and has frequently permitted those just like me to achieve their goals. Your new valuable suggestions entails a great deal to me and a whole lot more to my colleagues. Many thanks; from everyone of us.
I enjoy you because of your whole hard work on this web page. Ellie takes pleasure in carrying out research and it’s easy to understand why. A lot of people know all regarding the powerful manner you give informative items through your web blog and as well attract participation from other individuals about this issue while my simple princess is truly discovering a lot of things. Enjoy the remaining portion of the new year. Your carrying out a very good job.
I have to point out my love for your kind-heartedness for visitors who actually need help on this important content. Your very own commitment to getting the solution along appeared to be amazingly invaluable and have always enabled regular people like me to get to their dreams. Your own useful publication means a great deal to me and much more to my office colleagues. Warm regards; from each one of us.
I have to show my thanks to the writer for bailing me out of this condition. Because of exploring throughout the the web and meeting concepts which were not helpful, I thought my life was over. Existing without the answers to the issues you have resolved all through your entire article content is a critical case, as well as the kind that would have in a wrong way damaged my entire career if I hadn’t discovered your site. The ability and kindness in controlling all the pieces was tremendous. I don’t know what I would have done if I hadn’t come upon such a point like this. I can also at this moment look ahead to my future. Thanks very much for this high quality and result oriented help. I won’t hesitate to endorse the blog to any individual who should have counselling on this subject matter.
I precisely wished to say thanks again. I am not sure the things that I would have carried out without these ideas shown by you concerning such a area. Previously it was the distressing problem for me, but observing this specialised avenue you resolved it made me to cry over delight. I am happier for this service as well as believe you find out what a great job your are getting into educating others with the aid of a blog. I am certain you have never come across all of us.
I wanted to send you that very small word to help thank you as before considering the amazing secrets you have documented on this page. It was extremely open-handed with people like you in giving freely exactly what a few individuals could possibly have made available for an e-book in making some cash for their own end, and in particular seeing that you might well have tried it if you ever desired. These smart ideas likewise served to be a good way to be sure that some people have the same fervor much like my personal own to understand good deal more regarding this issue. I’m certain there are numerous more pleasant instances ahead for people who looked at your blog post.
I simply needed to thank you very much once more. I do not know what I could possibly have achieved without the aspects documented by you about such area. It seemed to be an absolute distressing condition in my opinion, but being able to view a new specialized fashion you resolved the issue forced me to jump with delight. Now i’m thankful for the help as well as hope that you know what a great job your are undertaking teaching others all through your webpage. Probably you’ve never met all of us.
I and also my buddies ended up looking at the nice key points found on your web page and so the sudden I had a terrible suspicion I had not expressed respect to the web blog owner for those strategies. The ladies were definitely for this reason stimulated to study all of them and now have actually been loving these things. Appreciate your really being very accommodating and then for deciding on certain excellent useful guides most people are really wanting to be aware of. Our own honest apologies for not saying thanks to you earlier.
I simply had to appreciate you again. I am not sure the things that I could possibly have accomplished without those tips and hints provided by you regarding my theme. It was actually the challenging crisis in my view, however , discovering the very well-written fashion you solved the issue forced me to cry with gladness. I am just happy for the service and even have high hopes you know what a great job your are getting into teaching others with the aid of your web page. I’m certain you haven’t come across all of us.
I actually wanted to compose a simple comment to be able to express gratitude to you for all of the splendid ideas you are giving out at this website. My time consuming internet lookup has now been paid with wonderful suggestions to exchange with my pals. I would mention that we site visitors actually are rather blessed to live in a remarkable site with so many lovely people with good secrets. I feel rather happy to have come across your entire web pages and look forward to so many more exciting moments reading here. Thank you again for a lot of things.
I want to express my gratitude for your kind-heartedness supporting people who need help on your area. Your real commitment to passing the solution around had been really insightful and has surely permitted guys much like me to get to their dreams. Your new helpful guideline can mean so much a person like me and much more to my fellow workers. Best wishes; from everyone of us.
I have to express appreciation to this writer for bailing me out of this type of problem. After surfing through the search engines and getting concepts that were not pleasant, I thought my entire life was well over. Living devoid of the solutions to the problems you have fixed by way of your main site is a critical case, as well as the ones which could have negatively damaged my career if I had not encountered your site. Your own understanding and kindness in maneuvering all the pieces was invaluable. I am not sure what I would’ve done if I had not come across such a thing like this. I can at this point look ahead to my future. Thanks very much for the professional and results-oriented help. I will not think twice to recommend your site to any person who ought to have guidance on this subject matter.
I simply wanted to say thanks again. I’m not certain what I might have implemented in the absence of the aspects provided by you directly on such industry. Certainly was a real daunting crisis in my view, nevertheless understanding the very skilled avenue you handled that made me to weep over fulfillment. I will be thankful for the support and then hope that you are aware of a great job that you’re undertaking educating people today by way of your web blog. I’m certain you haven’t met all of us.