By definition the term fiscal year is the specified time period during which all the financial statements are calculated.
Time span of a fiscal year
This is the time period of usually one year. This time is kept and noted usually in case of the businesses, governments and other organizations where it is necessary to keep the record of the annual finances. There are various ways to keep a check on the activities going on during a fiscal year. Different governments have made it the part of their jurisdictions and given the law agencies the responsibilities of formulating such laws, which can review and check the procedures of accounting and taxation and other proceedings in the finance department.
Submission of reports
Many jurisdictions require these reports to be submitted once in twelve months. However specific abiding by of the calendar dates is often overlooked and it is not considered necessary to go date by date in the preparation and reviewing of the fiscal reports. In the light of the statistics and accounting reports received at the end of as fiscal year, the policies and allocations are decided for the next fiscal year. Therefore the results and statistics reports of one fiscal year are very much important for the policy making and calculations of the next fiscal year.
Limits of fiscal year
Different countries and businesses have their own limits of fiscal year. For some it starts with the beginning of a year whole for some others, there are other criteria for setting the start and end of a fiscal year. The most important activity which goes all around the fiscal year is the tax reporting. Normally some companies also prefer to count the fiscal year by counting the weeks in a year and in this way the closest weekend to the last day of year is fixed for analysis, accounting and reporting of the whole fiscal year.
Therefore under such calculations of the fiscal year, there are about 52 or 53 weeks in the whole year which are to be accounted and reviewed. All the major trade companies of UK and USA are practicing the fiscal year calculations and analyses exactly identical to the calendar year.
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