Illustration - accounting periods
You'll learn how accounting periods work when a company enters liquidation and how to identify the key dates that determine period boundaries.
This lesson is part of a paid course
Buy the course to unlock every video lesson and the AI Tutor, plus mock exams with feedback on CIMA courses.
Already bought? Sign in
Ask the AI tutor anything about this lesson
It knows every lesson in the course — explanations, clarifications, practice questions.
In this lesson
- 0:00 Accounting periods in liquidation
- 0:31 Identifying accounting period boundaries
- 1:20 Applying the 12-month rule in liquidation
- 1:51 Why ceasing to trade is irrelevant
About this lesson
This illustration walks through a real scenario with Auto Max Limited, showing you exactly how to calculate each accounting period from appointment of liquidator through to finalisation. Understanding this is essential for Financial Reporting and Strategic Business Reporting papers, where you need to correctly identify accounting periods in exam scenarios. The key principle: once liquidation begins, periods are determined by either 12 months or liquidation finalisation—whichever comes first—and dates like ceasing to trade are irrelevant to your calculation.
Duration: 2m
Transcript
Every lesson comes with a full searchable transcript - included with the course.
Get the Advanced Taxation course
All 365 video lessons, an AI Tutor in every lesson and lifetime access.
Already bought? Sign in