Greetings Everyone,
I have a few quick questions about the expression "fiscal year" (FY).
(1) In the US, when a FY rather than a calendar year (Jan 1 - Dec 31) year is used, the fiscal year is designated by the year in which the FY _ends_. For example, the Senate glossary says in part "The fiscal year is designated by the calendar year in which it ends." I found just one website (of not unimpeachable authority) that definitively says the same applies for business firms, and although I'm 99% convinced that it does, I want to be sure. Can anyone give me an authoritative source that it does?Also, I believe UK companies end their FY on 30 June and I did confirm that UK firms use the ending year, not the beginning year. Can anyone confirm that this practice is universal, or that using the starting day of the FY would be absurd?
(2) If so, then can we say _with confidence_ that the expression "FY2013" is synonymous with saying "the fiscal year ended 2013." If this is true, then is this because the balance sheet date falls in the ending year?
(3) It seems sensible that, since an income statement presents results for the past year, and since the results for the coming year aren't known, it would be absurd to use the beginning year, but Japan uses the calendar year in which the period begins. (The FY for both the government and companies is April 1 - March 31.) That is, FY2013 ended on March 31, 2014. In fact, a quick survey of Japanese companies on the Net shows that about half of Japanese companies use the expression (for example) "Fiscal Year 2013" to indicate the year ended March 31, 2014. The other half use the Western method. I wonder whether and how many other countries or business firms do the same?
Many thanks in advance for any help.
I have a few quick questions about the expression "fiscal year" (FY).
(1) In the US, when a FY rather than a calendar year (Jan 1 - Dec 31) year is used, the fiscal year is designated by the year in which the FY _ends_. For example, the Senate glossary says in part "The fiscal year is designated by the calendar year in which it ends." I found just one website (of not unimpeachable authority) that definitively says the same applies for business firms, and although I'm 99% convinced that it does, I want to be sure. Can anyone give me an authoritative source that it does?Also, I believe UK companies end their FY on 30 June and I did confirm that UK firms use the ending year, not the beginning year. Can anyone confirm that this practice is universal, or that using the starting day of the FY would be absurd?
(2) If so, then can we say _with confidence_ that the expression "FY2013" is synonymous with saying "the fiscal year ended 2013." If this is true, then is this because the balance sheet date falls in the ending year?
(3) It seems sensible that, since an income statement presents results for the past year, and since the results for the coming year aren't known, it would be absurd to use the beginning year, but Japan uses the calendar year in which the period begins. (The FY for both the government and companies is April 1 - March 31.) That is, FY2013 ended on March 31, 2014. In fact, a quick survey of Japanese companies on the Net shows that about half of Japanese companies use the expression (for example) "Fiscal Year 2013" to indicate the year ended March 31, 2014. The other half use the Western method. I wonder whether and how many other countries or business firms do the same?
Many thanks in advance for any help.