A company’s financial year is 12 months long. A financial year generally coincides with the calendar year (1 January-31 December), but a company’s articles of association may specify a different financial year. In the selection of the most suitable financial year, it should be considered that the selected 12 consecutive months are chosen so that the period would be in keeping with the operating cycle of the accounting entity. One should not also forget that a financial year must always start on the first date of a month and end on the last date of a month (e.g. start on January 1 and end on December 31).
When a company is established, dissolved, or the beginning date of the financial year changed, the financial year may in these exceptional cases be shorter or longer than 12 months, but not longer than 18 months.