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The Time Period Principle

The time period principle is the concept that a business should report the financial results of its activities over a standard time period, which usually monthly, quarterly, or annually. Once the duration of each reporting period is established, you use the guidelines of Generally Accepted Accounting Principles or International Financial Reporting Standards to record transactions within each period.

You must include in the header of any financial statement the time period covered by the statement. For example, an income statement may cover the "Eight Months ended August 31."

Similar Terms

The time period principle is also known as the time period concept or time period assumption.

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Consistency principle
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Economic entity principle
Full disclosure principle
Going concern principle
Matching principle
Materiality principle
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