Definition: The closing adjustment period of a company's accounting year.
The year end is when a company must work through the process of adjusting each of their financial entries to a certain account in order to properly state these entries for the purpose of financial statement preparation.
There are numerous types of required adjustments. These adjustments could include:
- the accrual or deferral of revenue or expense items
- reclassification
- adjustments to conform book figures to physical counts (stock)
- reflecting on any unusual transactions
- and more
Accounting year end
The accounting year end date will take place on the first anniversary of the end of the month in which it was incorporated, no matter what twelve month period a company's
accounting year covers.