Amy, who has been an accountant for 12 years, worked for Arnold and Post, a mid-size law firm in Huntsville. At the end of each
fiscal year, Amy prepares an annual report for the firm's board of directors. The report includes all of the details found in the firm's financial statements. Amy makes sure that the dates on the financial statements are consistent and consecutive from one year to the next.
In short, the time period principle states that a business must report any financial statement at a specific time given. A time period could be many different things though. The time period could be monthly, quarterly, or yearly. It just depends on the company. If the dates on the financial statements are consisten then it does fit into this definition.
