00:01
Okay, so we are going to understand the concept of reporting cycle.
00:09
Okay, it is a methodology that enables an entity to prepare financial statements for required reporting period.
01:13
So initially and we can say also mandatorily on default basis, any entity has to prepare financial statements for this period like 1 january 2020 to 31st december 2020 so this is the default structure of any financial year for every entity will prepare financial statements okay now there are certain types of periods for which entity could prepare financial statements on you know in case of special circumstances then those periods could be monthly, quarterly and half year.
02:18
So these are different types of years, different type of periods for which entity could prepare financial statements.
02:27
However, the reasons could be different.
02:32
Let's suppose there is a government agency who has asked to, who has asked agency to prepare financial statements on quarterly basis and the entity the entity prepares monthly monthly statement a monthly statement to assess that what is the monthly performance of the business okay as per the decisions taken by manager okay so these are the periods for which financial statement could be prepared okay however the the period or we can say the year which does not start with the month of 1st january.
03:18
That matches with the fiscal year.
03:24
However, it is different from financial year...