A reporting period is the span of time covered by a set of financial statements. It is typically either for a month, quarter, or year. Organizations use the same reporting periods from year to year, so that their financial statements can be compared to the ones produced for prior years.
On rare occasions, a reporting period may be for a shortened time period, such as a week or a few days. Such a period is used when a business is either starting up operations mid-month or terminating operations prior to the end of a normal reporting period. A shortened period may also be used when a new corporate parent is taking over at mid-month.
The reporting period is stated in the header of a financial report. For example, the income statement header might read, "for the month ended June 30, 20X1," while the balance sheet header might read "as of June 30, 20X1."
When the reporting period is monthly, there are some anomalies to be aware of. First, not every month contains the same number of days, which means that the activity level reported by month will inevitably vary somewhat based on differences in the number of business days. Thus, February has the shortest number of days, while several months contain 31 days. Second, there are substantial holidays within some reporting periods (such as November and December), while other months contain no holidays at all. The result is a further difference in activity levels by month. Consequently, any financial analysis of results by month should factor in the number of business days in each of the reporting periods being analyzed.
Though unusual, a company could alter its reporting period in order to report a large gain or loss in a period in which the reported amount is especially beneficial. For example, shortening a reporting period so that a large loss-generating transaction is excluded will result in a reported profit when there should have been a loss.
A reporting period is the same as an accounting period.