Change in Fiscal Year: Financial Reporting Considerations

Entities may change their fiscal year for a variety of reasons, including matching financial reporting to the seasonal fluctuations of an entity’s business, cash management purposes, matching the fiscal years of peers in an industry, and changing to S-corporation status, among others. When entities change their fiscal year, questions arise about the financial reporting implications as well as the auditor and accountant reporting implications. This report provides guidance on how to address changes in fiscal years.