Fiscal year

A fiscal year (also known as a financial year, or sometimes budget year) is a one-year time interval whose beginning and end may be shifted with respect to the calendar year (1 January to 31 December). In the Northern Hemisphere, the most common shifted fiscal year is July to the next June, but other practices exist, such as April to the next March. For countries in the Southern Hemisphere, the fiscal year normally coincides with the calendar year, January to December. The series of consecutive fiscal years forms a calendar system known as fiscal calendar. The names of fiscal years are often shortened based on the calendar year in which they end; for example, "FY24" is an abbreviation for "fiscal year 2023-2024". It is used in governmental accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many jurisdictions require company financial reports to be prepared and published on an annual basis. Taxation laws generally require accounting records to be maintained and taxes calculated on an annual basis, which usually corresponds to the fiscal year used for government purposes. The calculation of tax on an annual basis is especially relevant for direct taxes, such as income tax. Many annual government fees—such as council tax and license fees—are also levied on a fiscal year basis, but others are charged on an anniversary basis. Some companies, such as Cisco Systems, end their fiscal year on the same day of the week each year: the day that is closest to a particular date (for example, the Friday closest to 31 December). Under such a system, some fiscal years have 52 weeks and others 53 weeks. The calendar year is used as the fiscal year by about 65% of publicly traded...