Year

AAA

DEFINITION of 'Year'

A period of time that is comprised of 12 consecutive months. A year is a 12-month period whose start date can vary. For individual taxation purposes (for annual federal income tax returns, for example), "year" typically refers to the calendar year that begins on January 1 and ends on December 31. A fiscal year is a period that is used for corporate or government accounting purposes and the preparing of financial statements. A fiscal year might coincide with the calendar year, or the time period that it represents could begin and end on different dates (as long as it involves 12 consecutive months).

INVESTOPEDIA EXPLAINS 'Year'

Corporations can elect to use the calendar year as their fiscal year (i.e., January 1 - December 31); however, they may choose any period to use for reporting and accounting purposes. By default, the IRS considers taxpayers to be calendar-year taxpayers; fiscal-year taxpayers (with other than January 1 - December 31 years) may have different deadlines for payments and for the filing of certain forms. The U.S. government's fiscal year, for example, begins on October 1 and ends on September 30. If a fiscal year ends during the next calendar year, it is referred to as the year in which it ends. For example, if the fiscal year runs from June 1, 2012, to May 31, 2013, it would be designated "fiscal year 2013" or "FY2013."

RELATED TERMS
  1. Calendar Year

    The one-year period that begins on January 1 and ends on December ...
  2. Year To Date - YTD

    The period beginning January 1st of the current year up until ...
  3. Accounting Period

    The time span in which certain financial events took place. The ...
  4. Tax Year

    The period of time which is covered by a particular tax return. ...
  5. Last Fiscal Year - LFY

    The most recent 12-month accounting period that a business uses ...
  6. Fiscal Year - FY

    A period that a company or government uses for accounting purposes ...
RELATED FAQS
  1. How do I calculate how long it takes an investment to double (AKA 'The Rule of 72') ...

    You can calculate the approximate amount of years it would take an investment to double, given the annual expected rate of ... Read Full Answer >>
  2. Why do companies report earnings at different times?

    This is a question that puzzles many people because, unlike individuals, who must file their taxes to the IRS every year ... Read Full Answer >>
  3. What are some of the advantages and disadvantages of absorption costing?

    Companies must choose between using absorption costing or variable costing in their accounting systems. There are advantages ... Read Full Answer >>
  4. What is the difference between the cost of capital and the discount rate?

    The cost of capital refers to the actual cost of financing business activity through either debt or equity capital. The discount ... Read Full Answer >>
  5. Why does zero-based budgeting require ongoing evaluation and management?

    Zero-based budgeting must have ongoing evaluation and management due to the fact a zero-based budget requires management ... Read Full Answer >>
  6. What is the prime cost formula?

    The term "prime cost" refers to the direct costs of manufacturing an item. It is calculated by adding the cost of raw materials ... Read Full Answer >>
Related Articles
  1. Taxes

    3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  2. Investing

    Earnings Cyclicality Exposes Profitable Trends

    Learn to explore a company's past profits to find today's opportunities.
  3. Investing Basics

    Explaining Write-Downs

    A write-down is a reduction in the book value of an asset because it is overvalued compared to the market value.
  4. Economics

    What are Noncurrent Assets?

    Noncurrent assets are property that a company owns that will last for more than one year.
  5. Investing Basics

    How Much Do CPAs Make?

    If you're considering becoming a CPA, here's what you might expect to earn.
  6. Economics

    Explaining Activity-Based Costing

    Activity-based costing (ABC) is a managerial accounting method that assigns certain indirect costs to the products incurring the bulk of those costs.
  7. Economics

    What is a Contra Account?

    A contra account is an offset that reduces the value of a related account.
  8. Fundamental Analysis

    What is Quantitative Analysis?

    Quantitative analysis refers to the use of mathematical computations to analyze markets and investments.
  9. Economics

    Explaining Residual Value

    Residual value is a measurement of how much a fixed asset is worth at the end of its lease, or at the end of its useful life.
  10. Fundamental Analysis

    Why Last In First Out Is Banned Under IFRS

    We explain why Last-In-First-Out is banned under IFRS

You May Also Like

Hot Definitions
  1. Stop-Loss Order

    An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit ...
  2. Covered Call

    An options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset ...
  3. Butterfly Spread

    A neutral option strategy combining bull and bear spreads. Butterfly spreads use four option contracts with the same expiration ...
  4. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
  5. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random ...
  6. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
Trading Center