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. Accounting Period

    The time span in which certain financial events took place. The ...
  3. Year To Date - YTD

    The period beginning January 1st of the current year up until ...
  4. Fiscal Year - FY

    A period that a company or government uses for accounting purposes ...
  5. Tax Year

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

    The most recent 12-month accounting period that a business uses ...
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

    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. Fundamental Analysis

    How should a company budget for capital expenditures?

    Learn the difference between capital expenditures and operational expenses, and discover the importance of budgeting for capital expenditures.
  5. Fundamental Analysis

    What is accrual accounting in Oracle Apps?

    Learn more about Oracle Applications, an enterprise software system that enables businesses to streamline information systems – including accrual accounting.
  6. Fundamental Analysis

    Why do companies publish P&L statements?

    Understand the basics of the profit and loss statement, including why it is published and how it is used to assess financial stability.
  7. Investing Basics

    What is the first day of the quarter?

    Learn when the first day of the quarter is. Explore why investors and analysts prefer to compare results year-over-year due to seasonality.
  8. Investing Basics

    What is the difference between a quarter and a year in finance?

    Examine the difference between a fiscal quarter and a fiscal year. Learn why investors examine both quarterly and annual growth rates.
  9. Fundamental Analysis

    What is the first day of the first quarter?

    The first day of companies' fiscal years varies based on industry cycles. The timing is especially important because annual reports can have unexpected effects.
  10. Fundamental Analysis

    What is the first day of the second quarter?

    Learn about the fiscal year of different companies and when the second quarter begins. Explore why analysts often prefer to compare results year-over-year.

You May Also Like

Hot Definitions
  1. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
  2. Santa Claus Rally

    A surge in the price of stocks that often occurs in the week between Christmas and New Year's Day. There are numerous explanations ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with other commodities of the same type. Commodities are most often ...
  4. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  5. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  6. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
Trading Center