Annual Reporting Periods

These flashcards cover key concepts surrounding annual reporting periods and fiscal year definitions.

Annual Reporting Period

The time frame that companies use for their financial reporting, which can vary from company to company.

Fiscal Year

A twelve consecutive month period used by an organization for accounting purposes that does not necessarily align with the calendar year.

Natural Business Year

The period that corresponds with a company's lowest sales activity within the year, often chosen by companies with seasonal sales variations.

Example of Natural Business Year for Retailers

Retail companies such as Walmart, Target, and Nordstrom typically have a natural business year that ends around January 31.

Kellogg Company's Fiscal Year

Ends on the Saturday closest to December 31, illustrating a flexible fiscal year choice.

GAAP's Fiscal Year

Typically ends in January or February each year and can be structured as a fifty-two week period.