Annual Basis

  

Categories: Regulations, Banking

The general definition of "annual basis" would be something like "per year." Most companies and investment firms provide details about earnings for different periods of time. Most commonly, these figures get reported on either a quarterly basis or an annual basis.

Quarterly refers to a three-month period (you're cutting up the 12-month year into four equal parts, or three months each). The annual basis covers the full year, though sometimes the year being covered isn't the January to December one we're used to. Companies can set their fiscal year to start on any date that suits their business. So you'll often find companies ending their year in months other than December.

For example, retailers often run their fiscal years to the end at the end of January. That way, they have more time to process post-Christmas shopping in their returns for that year.

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