13TH PERIOD
Financial Dictionary — SEC Filings & Reporting
Definition
in the fiscal year is the period used for fiscal year-end adjusting entries (periods 1-12 being the months in the fiscal year).
Detailed Explanation
The 13th period is an additional accounting period used at year-end for adjusting and closing entries. It helps separate regular monthly activity (periods 1–12) from year-end adjustments and audit entries.
Common Uses
- Used to prepare and present financial statements and disclosures.
- Used when classifying items and explaining accounting impacts to users of the financials.
- Used when classifying items and explaining accounting impacts to users of the financials.
Practical Example
- Example: During financial statement preparation, **13TH PERIOD** guides how information is presented and disclosed.
Why This Term Matters
- Why it matters: Enhances transparency, improves comparability, and reduces misunderstanding by stakeholders.