Balansperiode

Balansperiode is a term used in accounting to denote the time span covered by a set of financial statements, typically the period for which a company records and reports its financial position and performance. During the balansperiode, the company tracks all assets, liabilities, and equity (the balance sheet) as well as income and expenses (the income statement). The period begins with the opening balances from the end of the previous period and ends with the closing balances at the balance date.

Duration and end date are standard features of a balansperiode. Most organizations use a 12-month period that aligns with the fiscal year or the calendar year. However, the initial period for a new entity or a change in the year-end date can produce a shorter or longer balansperiode to reach a full subsequent year. In some jurisdictions, regulatory rules govern how such transitions must be handled, including required disclosures and auditing requirements.

Purpose and use: the balansperiode provides a coherent time frame for measuring performance, liquidity, and solvency. It serves as the basis for annual accounts, tax returns in many systems, and financial analysis by investors, lenders, regulators, and management. The opening balance of a period equals the closing balance of the preceding period, ensuring continuity across periods.

Relation to financial statements: the balansperiode underpins the preparation of the balance sheet and the income statement for that period. All transactions within the period are recorded and summarized to reflect the company’s financial position and results as of the balance date.