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What is periodicity in accounting?

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Question ajoutée par Wasiu Lamidi , Instructor , UNITeS Networking Academy @ Federal Science and Technical College, Ilesa
Date de publication: 2016/08/02
SHAHZAD Yaqoob
par SHAHZAD Yaqoob , SENIOR ACCOUNTANT , ABDULLAH H AL SHUWAYER

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. For example, some earth-moving equipment may require two years to manufacture but the activities will be divided up and reported in quarterly financial statements. A similar situation occurs at a company that develops complex digital systems.Even a company that manufactures small consumer products will have ongoing activities and costs that overlap two years or more. Again, the accountants will assume that the revenues and costs can be assigned or allocated to the appropriate accounting periods. 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.

Wasiu Lamidi
par Wasiu Lamidi , Instructor , UNITeS Networking Academy @ Federal Science and Technical College, Ilesa

Periodicity in accounting implies that accountants will assume that an organisation's complex and ongoing activities can be divided up and reported in yearly, quarterly and monthly financial statements.

Tomasz L
par Tomasz L , Reporting Specialist , Outworking

Rule which allows ensuring the data comparability.

Naveed Iqbal
par Naveed Iqbal , Senior Accountant , Hamdan AL Shamsi Lawyer & Legal Consultants

The process of prepapring finanacial statements, Monthly, Quarterly, Or annal basis called periodicity. 

manseer muhammed ali
par manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

Periodicity is also known as the time period assumption

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. 

Shadab Ali Khan
par Shadab Ali Khan , Transaction Processing Analyst , Accenture Solutions Pvt Ltd

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.

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