accounting period

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Accounting Period

1. The period of time reflected in financial statements. Usually, the accounting period is either the calendar year or a quarter. For example, publicly-traded companies must report their financial state for the accounting period since their previous report.

2. In the United Kingdom, the period for which corporate taxes are assessed.

accounting period

accounting period

the time period over which a firm prepares its PROFIT-AND-LOSS ACCOUNT and at the end of which it draws up its BALANCE SHEET. JOINT-STOCK COMPANIES are required by law to prepare ANNUAL REPORTS AND ACCOUNTS for the shareholders. Many firms now prepare quarterly, monthly or even weekly trading accounts to give managers prompt feedback about performance.

Accounting Period

The period (normally 12 months) that a taxpayer uses to determine federal income tax liability. Unless a taxpayer makes a specific choice to the contrary, his accounting period is the calendar year.
References in periodicals archive ?
This standard provides the criteria for the measurement of insurance costs, the assignment of such costs to cost accounting periods, and allocation to cost objectives.
The current annual investment allowance is PS500,000 so the first PS500,000 you spend on certain plant and machinery in any accounting period will be 100 per cent allowable for tax purposes.
Accountants use depreciation to allocate the cost of the investment over many accounting periods.
Sometimes deployment phases do not coincide with accounting periods, so the operation may start a little heavier than usual.
The year used for reporting tax liability must generally correspond to the taxpayer's accounting period.
For such companies, an extension of the accounting period to a date on or after 30 March--the date the new audit exemption limits come into force--will be effective for the purposes of accelerating the company's entitlement to audit exemption.
For example, it may be advisable to reinstate the system in which a bank is to be refunded a portion of corporate taxes paid in the past if and when it has suffered losses during its accounting period.
Investment income is recognized as revenue in the period it is earned and gains and losses are recognized as changes in net assets in the accounting periods in which they occur.
b) consecutive monthly accounting periods are calculated from the day following the end of the previous accounting period,
The firm said doing this could have the potential to result In a timely tax repayment or reduce tax liabilities relating to previous accounting periods.
2006-45, the Service updated its automatic consent procedures for certain eligible corporations to change their annual accounting periods.