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In accounting, periodicity means that accountants will assume that a company's complex and ongoing activities can be divided up and reported in annual, quarterly and monthly financial statements.
The activity within the scope of an accounting period that must be recorded within the time period on a financial statement.
Periodicity is also known as the time period assumption.
Period in which the financial statements of a company are prepared
Basically account period is defined by local law. But generally it is one year or 12 months & report generation might be for less than 12 months.
that means the reports of the company which include the impotent information will be declared through intervals (monthly, quarterly, yearly) to get whole view of what was going to be controlled later
Accounting Periodicity
an organization can report its financial results within certain designated periods of time. This typically means that an entity consistently reports its results and cash flows on a monthly, quarterly, or annual basis. These time periods are kept the same over time, for the sake of comparability. For example, if the reporting period for the current year is set at calendar months, then the same periods should be used in the next year, so that the results of the two years can compared on a month-to-month basis.
Hence, the accountants will report the company's net income and cash flows for each accounting period (year, quarter, month, etc.) and the company's financial position at the end of each accounting period. Periodicity is also known as the time period assumption.
