A calendar year refers to a continuous period beginning on January 1 and ending on December 31, widely used for financial and accounting purposes. In contrast, a fiscal year can vary depending on the organization's specific reporting requirements.
A financial period, also known as an accounting period, is a specific timeframe within which financial performance is measured and reported for both businesses and individuals. This span is essential for preparing periodic financial statements and evaluating profitability, financial position, and cash flows.
A reporting period is the specific span of time covered by a financial statement. This time frame is crucial as it provides stakeholders with the necessary context to evaluate a company’s financial performance and position.
A year is traditionally understood as a period of time consisting of 365 days, or 366 days in a leap year, which represents one complete orbit of the Earth around the Sun.
Year-end refers to the end of an accounting period, which may align with the calendar year or a fiscal year, and is a pivotal moment when financial books are closed.
