majandusaastat

Majandusaasta is the accounting period for which a company in Estonia prepares its annual financial statements. In English, it is commonly referred to as the fiscal year or financial year. The term designates the 12-month interval used for recording transactions, determining profit or loss, and reporting to owners, creditors, and authorities.

The majandusaasta is normally 12 consecutive months and typically runs from the start date chosen by the company. Many enterprises align it with the calendar year, but a different 12-month period can be established if it is permissible under Estonian accounting rules and documented in the company’s governing documents. Once chosen, the start and end dates generally remain consistent, though changes require proper compliance and notification to the relevant authorities.

Financial statements prepared for the majandusaasta include the balance sheet, income statement, cash flow statement, and accompanying notes. These documents are used for internal management, external reporting to shareholders, auditors, banks, and, importantly, for tax purposes. In Estonia, the corporate tax system taxes profits upon distribution rather than on annual accounting profits, linking tax events to the outcomes reported for the majandusaasta.

In practice, the majandusaasta serves as the primary time frame for bookkeeping, auditing, and statutory reporting. It provides a standardized basis for assessing a company’s financial position and performance over a defined year, while also guiding tax obligations and regulatory compliance.