Tilinpäätöshetken

Tilinpäätöshetken, often translated as the "moment of financial statement," refers to the specific point in time at which a company's financial statements are prepared. This is typically the end of a fiscal period, such as the end of a calendar year or a company's chosen financial year. It is a crucial point for accounting purposes, as it marks the cutoff for all financial transactions and activities that will be included in the financial reporting for that period.

At the tilinpäätöshetken, all income earned and expenses incurred up to that date are recognized and recorded. Assets and liabilities are valued as of this date, providing a snapshot of the company's financial position. This ensures that the financial statements accurately reflect the company's performance and financial health for the period that has concluded. The preparation of financial statements at this juncture is a mandatory requirement for most businesses, enabling stakeholders such as investors, creditors, and management to make informed decisions. It forms the basis for tax calculations and dividend distributions.