Investopedia

Year

Filed Under »
Dictionary Says

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 Says

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."

Articles Of Interest

  1. 3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.
  2. Earnings Cyclicality Exposes Profitable Trends

    Learn to explore a company's past profits to find today's opportunities.
  3. 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 within the exact same time period (by April 15), companies have the benefit ...
  4. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
  5. Financial Statement: Extraordinary Vs. Nonrecurring Items

    When it comes to analyzing a company, successful analysts spend considerable time differentiating between accounting items that are likely to recur going forward from those that most likely will ...
  6. Get A Career In Showbiz Accounting

    An accounting career doesn't have to be boring. If you love numbers, but want excitement as well, consider the field of showbiz accounting.
  7. What Management Accountants Do

    If you like keeping track of a company's income and expenses but also want to hold a position with significant responsibility and authority, management accounting could be the job for you.
  8. GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas

    Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ...
  9. Using The Price-To-Book Ratio To Evaluate Companies

    The P/B ratio can be an easy way to determine a company's value, but it isn't magic!
  10. Small Business: Speed Up Receivables To Avoid A Cash Crunch

    Waiting for customers to pay can be a losing game. Look to factoring for quicker cash.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  2. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  3. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  4. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  5. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  6. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
Trading Center