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What are financial years – and why are they different from calendar years?

<a href="https://theconversation.com/profiles/michaela-rankin-1544784">Michaela Rankin</a>, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Yesterday was July 1, the first day of the new financial year in Australia. Also called fiscal years, financial years are often abbreviated in print. The one that’s just begun in Australia – July 1 2024 to June 30 2025 – will typically be denoted by FY24/25 or FY25. As the name suggests, financial years are used for financial reporting, tax and budgeting purposes. Whether you are preparing an individual tax return or financial statements for a business, it is important to understand the difference between financial and calendar years. Both have 365 days. But the calendar year, based on the <a href="https://www.timeanddate.com/calendar/gregorian-calendar.html">Gregorian calendar</a>, runs from New Years’ Day on January 1 through to December 31. Australian financial years on the other hand run from July 1 of one year to June 30 the next. But this July to June financial year <a href="https://web.archive.org/web/20200430054150/https:/www.cia.gov/library/publications/the-world-factbook/fields/228.html">does not apply</a> in all countries. Many align their financial year with the calendar year, but others have further variations still. So why are they different, and what does that mean for businesses operating across borders? <h2>Different around the world</h2> In contrast to our own, the United Kingdom’s financial year starts on April 6 each year and runs to April 5 the next. The English and Irish New Year traditionally fell on March 25, when taxes and other accounts were due. But in the 18th century, the British empire switched from the Roman Julian calendar to the Gregorian calendar, and had to <a href="https://www.bowesbrooks.co.uk/why-does-the-tax-year-start-on-6th-april/">adjust the start date</a> to avoid losing tax revenue. India’s fiscal year runs from April 1 until March 31, for a <a href="https://www.idfcfirstbank.com/finfirst-blogs/finance/reasons-why-the-financial-year-starts-from-april">number of reasons</a>. Historically a country that was heavily focused on agriculture, this timeframe aligned with the crop cycle and allowed the government to develop financial plans for the sector. The British empire also influenced the April reporting schedule in India, as prior to independence many financial policies were based on the British system. <h2>Government budgets play a role</h2> In the United States, fiscal years once ran from July 1 to June 30, like Australia’s do now. But in 1974 this was <a href="https://www.federaltimes.com/management/budget/2022/09/20/why-the-us-federal-fiscal-year-2023-starts-in-october/">changed</a> to instead span October 1 to September 30, giving Congress more time to agree on a budget each year. In the US, however, companies can also <a href="https://www.business.com/articles/how-to-decide-on-fiscal-year/">choose their own</a> fiscal years. Some choose a calendar year, but others elect dates that better align with their business cycle. Walmart’s, for example, ends on January 31 each year to reflect its typically strong financial performance over the holiday period at the end of the year. In Australia, the financial year matches government reporting cycles. Unlike the northern hemisphere, our parliamentarians typically take holidays over summer in December and January, which makes meeting over November and December to approve government budgets difficult. The federal budget is issued in May for the following financial year, giving parliament time to consider it before the new fiscal year begins. <h2>Comparing (and taxing) performance</h2> Regardless of the time period over which a financial year operates, its primary purpose is to provide a standardised time frame for financial reporting. Financial years allow income and expenses to be tracked and compared over the same timeframe each year. This allows investors to compare business performance across consistent periods. They are also used to determine the collection of personal income tax. Our government uses this information to calculate the amount of tax it will collect through the Australian Taxation Office each year. Businesses with operations spanning multiple countries may have to contend with fiscal years that do not align. Where this is the case, they may need to choose one financial year for the whole company, typically that used by the parent company. Keeping track of the financial year is helpful for individuals, in knowing when tax returns need to be prepared (and when to expect end-of-financial-year sales). It is also important for businesses to consider the financial year in making budgeting, business and tax planning decisions. <img style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important;" src="https://counter.theconversation.com/content/233655/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /> <a href="https://theconversation.com/profiles/michaela-rankin-1544784">Michaela Rankin</a>, Professor and Head, Department of Accounting, <a href="https://theconversation.com/institutions/monash-university-1065">Monash University</a> Image credits: Shutterstock This article is republished from <a href="https://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-are-financial-years-and-why-are-they-different-from-calendar-years-233655">original article</a>.

Money & Banking

Put down your calendar - You’re travelling in May

1. Paris, France May brings mild weather as spring blossoms, so it’s the perfect month to explore the pretty city. La Nuit des Musées falls on the third Saturday of May and allows visitors free entry to the city’s museums, which stay open late for the occasion. 2. Hokkaido, Japan Believe it or not, you can travel to Japan past April and see the cherry blossom season in full swing! If you’ve missed the April mark then head up north to Hokkaido where the Sakura flower blooms a month later. Matsumae Park is one of the best places to spot them, with around 250 varieties of cherry blossom and 10,000 trees. 3. Wales While we can’t promise perfect weather for Wales, there may be a hint of sunlight to keep you warm amongst the drizzle. May is the perfect month for climbing Snowdon, exploring Portmeirion and if you’re up for the challenge - walking the entire Wales Coastal path. 4. Memphis, USA The cleverly named Memphis in May festival is a month-long festival that honours a specific foreign country every year and celebrates through live events, exhibitions, screenings, performances and art. 5. Nepal The weather couldn’t be any more pleasant in Nepal in May! Two of the country’s largest festivals take place during the month too. Tiji festival is a celebration of the (presumed) triumph of good over evil, while Buddha Jayanti commemorates the life and times of Gautama Buddha, the founder of Buddhism. Image credit: Shutterstock

International Travel

New theory behind Stonehenge's true purpose

After an extensive new study, archaeologists believe they have uncovered the true purpose of Stonehenge. Long believed to have been used solely for ceremonial purposes, a study led by Timothy Darvill of Bournemouth University has concluded that Stonehenge served as a solar calendar, and he has identified how it may have worked. The monument, which lies on a flat plain of land in England’s southwest, is adorned with astronomical alignments that were built into the design and orientation of the landmark. The central axis of the megaliths was - and still is - aligned with the sunrise at midsummer and sunset at midwinter, with the stones perfectly framing the rising and setting sun when days were at their longest and shortest. The ring of 30 upright stones, supporting 30 horizontal stones, represents the number of days within a month. As well as this, distinctive stones in the circle mark the start of three 10-day weeks, according to the study. Twelve such months would come to 360, but a group of “trilithons” - a structure formed of two large vertical stones supporting a third stone set horizontally across the top - were arranged in a horseshoe shape in the centre of the site. According to Professor Darvill, these represent the extra five days needed to match the 365-day solar year. Four smaller stones that lay outside the circle in a rectangle were a way to keep track of a leap year, with an extra day every four years. “Finding a solar calendar represented in the architecture of Stonehenge opens up a whole new way of seeing the monument as a place for the living,” Prof Darvill said in a news statement. “A place where the timing of ceremonies and festivals was connected to the very fabric of the universe and celestial movements in the heavens.” Despite Professor Darvill’s convincing study, some experts are not convinced. “The numbers don’t really add up - why should two uprights of a trilithon equal one upright of the sarsen circle to represent 1 day?” University College London’s Institute of Archaeology professor Mike Parker Pearson said. “And there’s selective use of evidence to try to make the numbers fit: some of the stones have been left out because they evidently can’t be made to fit.” On top of Bournemouth University's study, the recent discoveries of graves and artefacts near the stone circle have shown that Stonehenge was not home to one isolated group but part of a deeply interconnected world. Image credits: Getty Images

International Travel

Is this the world's most expensive advent calendar?

Image: TikTok Chanel have released a luxury advent calendar that has received significant backlash from customers, who claim it is not worth the $1140 price tag. In a video posted on TikTok, influencer Elise Harmon filmed herself unboxing the pricey calendar and revealed the underwhelming contents. The Chanel website purports that each day of the calendar either “contains a full-size fragrance or makeup product, miniature, or other surprise marked with Gabrielle Chanel’s lucky number.” Those willing to fork out the cash for the calendar can purchase it from select Chanel Beauty Boutiques. Harmon can be seen inspecting the calendar to see if it's “worth the hype” but is significantly disappointed when she opens the first item to see a packet of stickers. As she continues to open the calendar, she seems to be somewhat satisfied with a small bottle of Chanel hand cream. The video went viral after racking up over 11 million views and more than 1.7 million likes. Users were quick to share their outrage at the overpriced calendar, with one user writing, “The audacity of the stickers.” Another wrote, “$825USD was spent on the packaging and $25USD for everything….” As the video gained more traction, users in the comments begged Harmon to do another unboxing video, with one user writing, “More please, this is a joke.” In a follow-up video, Harmon posted another clip of her unboxing day 8. She holds up the box and says, “Day 8 was really calling my name.” In a bitter twist, she reveals that the contents were just a tiny dust bag that says “Chanel” on it. “Chanel should be embarrassed” one user responded.

Money & Banking

The 2022 Australian Firefighters Calendar is back and better than ever

If you’re running out of Christmas gift ideas, never fear: the Australian Firefighters Calendar is here. And they don’t just sell calendars to raise money for charities - with over $3.2 million raised since the first calendar was printed in 1993 - they also sell <a rel="noopener" href="https://www.australianfirefighterscalendar.com/merchandise/pillowcase-dog-3" target="_blank">pillowcases</a> and <a rel="noopener" href="https://www.australianfirefighterscalendar.com/merchandise/daily-planner-2" target="_blank">planners</a>! Firefighters from the Urban, Rural, Aviation, Armed Forces and Corporate firefighting services have come together for yet another glorious series of calendars. After three weeks of photoshoots, the final products include a calendar with the firefighters on their own, as well as a ‘mixed animal’ calendar, specific animal calendars (cats, dogs, and horses), a summer calendar with numerous beach shots, and an animals only calendar. The summer edition, new for 2022, features the firies in swimming gear instead of their usual fire protection ‘fits. <blockquote style="background: #FFF; border: 0; border-radius: 3px; box-shadow: 0 0 1px 0 rgba(0,0,0,0.5),0 1px 10px 0 rgba(0,0,0,0.15); margin: 1px; max-width: 540px; min-width: 326px; padding: 0; width: calc(100% - 2px);" class="instagram-media" data-instgrm-captioned="" data-instgrm-permalink="https://www.instagram.com/reel/CWC6OJKjND1/?utm_source=ig_embed&utm_campaign=loading" data-instgrm-version="14"> <div style="padding: 16px;"> <div style="display: flex; flex-direction: row; align-items: center;"> <div style="background-color: #f4f4f4; border-radius: 50%; flex-grow: 0; height: 40px; margin-right: 14px; width: 40px;"></div> <div style="display: flex; flex-direction: column; flex-grow: 1; justify-content: center;"> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; margin-bottom: 6px; width: 100px;"></div> <div style="background-color: #f4f4f4; border-radius: 4px; flex-grow: 0; height: 14px; width: 60px;"></div> </div> </div> <div style="padding: 19% 0;"></div> <div style="display: block; height: 50px; margin: 0 auto 12px; width: 50px;"></div> <div style="padding-top: 8px;"> <div style="color: #3897f0; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: 550; line-height: 18px;">View this post on Instagram</div> </div> <p style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; line-height: 17px; margin-bottom: 0; margin-top: 8px; overflow: hidden; padding: 8px 0 7px; text-align: center; text-overflow: ellipsis; white-space: nowrap;"><a style="color: #c9c8cd; font-family: Arial,sans-serif; font-size: 14px; font-style: normal; font-weight: normal; line-height: 17px; text-decoration: none;" rel="noopener" href="https://www.instagram.com/reel/CWC6OJKjND1/?utm_source=ig_embed&utm_campaign=loading" target="_blank">A post shared by Aus Firefighter Calendar (@australianfirefighterscalendar)</a> </div> </blockquote> In addition to the calendars, a daily planner is available for $10, and six different pillowcases featuring firefighters with and without animal companions are also for sale. As always, all proceeds will go to charity. Last year, charities supported included the Kids with Cancer Foundation, Rural Aid Australia, Pets of the Homeless, Currumbin Wildlife Hospital, Precious Paws Animal Rescue, RACQ, and Healing Hooves. In addition, the calendar is teaming up with US-based Greater Good Charities to support their Rescue Rebuild program. The Rescue Rebuild program is dedicated to renovating animal shelters, domestic violence shelters, and homeless shelters. Director of Partnerships at Greater Good Charities Lesley McCave said, "The Greater Good Charities are so excited to be partnering with the Australian Firefighters Calendar, we have been a huge supporter of their work through our social media channels for years now. This will be the start of a long-lasting partnership on charity projects across the US.” According to the Australian Firefighters Calendar team, the decision to begin supporting US charities was made, in part, as a thank you for the generosity shown by American animal lovers during Australia’s devastating bushfire season in 2019-20. Proceeds from calendar sales in the US helped support the Byron Bay Wildlife Hospital, which cared for numerous animals, particularly koalas, who were affected by the fires. Australians and Kiwis can pick up a calendar <a rel="noopener" href="https://www.australianfirefighterscalendar.com/" target="_blank">here</a> for $22, or buy all of them as a bundle for $175. Image: Australian Firefighters Calendar

Beauty & Style

Watch out! Scammers are now targeting you using Google Calendar

Experts from international security firm Kaspersky have discovered calendar apps are being targeting in a new type of phishing scam. A phishing scam is one that attempts to trick you into giving out your personal information, which includes your bank account numbers, passwords and credit card numbers. The new scam exploits a default feature which gives the ability to add invitations and events automatically to calendar apps unless it is turned off manually. Kaspersky security researcher Maria Vergelis said scammers hope the “calendar phishing” technique will catch unsuspecting victims off guard, according to <a href="https://finance.nine.com.au/personal-finance/google-calendar-scam-google-calendar-scam-kaspersky-discover-new-phishing-attack/0d3e39a1-4132-4dd4-90da-30c4a3b2977d">Nine Finance</a>. “The ‘calendar scam’ is a very effective scheme as currently people have more or less gotten used to receiving spam messages from emails or messengers and do not immediately trust them,” she explained. “This may not be the case when it comes to the Calendar app, which has a main purpose to organise information rather than transfer it.” How the scam works The scam sends a pop-up notification of an invitation to the victim’s smartphone and the recipient is encouraged to click on a link. Once the user clicks on the link, it redirects you to a website that features a simple questionnaire with prize money on offer. In order to receive the prize, they are asked to enter personal information, such as credit card number, name, phone number and address. This information goes straight to the scammers who exploit this information for money. How to disable automatic invites “So far, the sample we’ve seen contains text displaying an obviously weird offer, but as It happens, every simple scheme becomes more elaborate and trickier with time,” Vergelis warned. “The good news is one also doesn’t need any sophisticated precautions to avoid such scam - the feature that enables it can be easily turned off in the calendar settings.” Disabling the “automatic invites” feature is easy enough. <ul> <li style="font-weight: 400;">Open Google Calendar</li> <li style="font-weight: 400;">Click the settings Gear Icon</li> <li style="font-weight: 400;">Click “Event Settings”</li> <li style="font-weight: 400;">Click on the drop-down menu and select: “No, only show invitations to which I've responded”</li> </ul> Google are well aware of this scam, but stopping all spam is not an easy task. “Combating spam is a never-ending battle, and while we've made great progress, sometimes spam gets through,” Google said in a statement. “We remain deeply committed to protecting all of our users from spam: We scan content on Photos for spam and provide users the ability to report spam in Calendar, Forms, Google Drive, and Google Photos, as well as block spammers from contacting them on Hangouts.”

Technology

2016 calendar, put together by an aged care facility, will warm your heart

It’s an aged care facility like no other. At Tinonee Gardens Multicultural Village in Newcastle, New South Wales, the residents have created a beautiful calendar called ‘Tionee Stars’. It doesn’t feature supermodels, athletes or even firemen. Tinonee Stars 2016 showcases 12 of its senior residents of Tinonee Gardens, a non for profit Multi-Cultural Village in the Hunter Region. The year commences with a sprightly "Annie get your gun", then James Bond leaps into March, Babe Pig in the city ushers in May and December features White Christmas, with a trio of residents regaled in spectacular Santa fashion. Along the way we encounter Mary Poppins, Laurel and Hardy as well as a very elegant Audrey Hepburn at breakfast at Tiffany’s. The stand-alone facilities executive officer Sue Farady speaks highly of the fun and communal atmosphere offered at the aged care facility. “We are very social at Tinonee with residents enjoying a range of lifestyle activates like music therapy, drum circle, Tinonee choir, the annual spring ball, Christmas carols and themed events. This Tinonee Stars initiative just adds to our repertoire, is fun for residents, families and Tinonee staff and of course is a good fundraising exercise.” The calendar production was a team effort with costumes and props provided by friends of Tinonee Gardens. Von Mullane from YCM Photography volunteered to take the charming photographs for no charge and these images are the beautiful result. Calendar sales are available through <a href="http://www.tgtmv.org.au/site/index.cfm" target="_blank">administration at Tinonee</a> or by ringing 4967 6366. PRICE: $15 plus postage Related links: <a href="http://www.oversixty.co.nz/lifestyle/retirement-life/2015/12/retirement-comics/">Comics about retirement to make you laugh</a> <a href="http://www.oversixty.co.nz/lifestyle/retirement-life/2015/12/questions-to-ask-before-retiring/">The questions everyone needs to ask themself before retiring</a> <a href="http://www.oversixty.co.nz/lifestyle/retirement-life/2015/11/retirement-good-for-health-study/">Retirement boosts happiness and health</a>

News

Granny’s funny reaction to hunky fireman calendar

Grandmothers are used to receiving all types of gifts, be it from chocolates to handmade decorations but when this grandma receives a calendar filled with hot hunky fireman, she just can’t get enough. Video footage has emerged of the moment Mary Ann Davis opened her special gift of sexy firemen and the 80-year-old lady can be seen laughing for two minutes straight as she says, “Oh wow, I don’t think I can stand this.” After opening the calendar, she says, “Isn’t that cute” and falls into a fit of uncontrollable laughter. The video initially uploaded to share with a few friends but has since received over 55,000 views on YouTube. Apart from making everyone who watches it laugh hysterically the video has also brought attention to a good cause. The profits of the calendar go to support the Hamilton Country Fallen Firefighters Memorial in Indiana and with this video the Calendar has sold out in several states. Seeing Davis shone as the firefighter’s number one fan, they treated her to a surprise – she got a special meet and greet and even got to take some of her own pictures with the gorgeous crew of men. Related links: <a href="http://www.oversixty.co.nz/news/news/2016/01/stunning-mid-air-firework-video/">Drone captures footage of fireworks display mid-air in this spectacular video</a> <a href="http://www.oversixty.co.nz/news/news/2016/01/tips-to-make-dairy-products-last-longer/">7 tips to make dairy products last longer</a> <a href="http://www.oversixty.co.nz/news/news/2016/01/spot-the-panda-hidden-in-this-vintage-school-photo/">Spot the panda hidden in this vintage school photo</a>

News

Priest and cat 2016 calendar is hilarious

Russian Orthodox priests have posed as models for a glossy 2016 calendar, cuddling their pet cats. This is the reportedly the first calendar to depict priests in such a style. One of the calendar’s creators, Ksenia Luchenko, a journalist at the Pravmir website, told ABC News Russia’s powerful church was not generally open to such informal depictions of its clerics. "That's why we did it ourselves. We're not linked to official structures," Ms Luchenko said "It's all their own cats - nothing was staged. It was whoever had a cat and was ready to pose for a photo." The photos are admittedly a little odd, and while we probably wouldn’t get this calendar ourselves, there’s no denying it’s all in good fun. To view some of the photos, scroll through the gallery above. Related links: <a href="/news/news/2016/01/girl-tries-to-scam-extra-holiday-with-letter/">Girl tries to scam extra week's holiday with fake letter</a> <a href="/news/news/2016/01/disneyland-star-wars-attraction/">Disneyland's Star Wars attraction takes over park</a> <a href="/news/news/2016/01/sheep-missing-six-years-finally-gets-sheared/">Lost sheep has 20 kilos of wool shorn at first haircut in 6 years</a>

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What are financial years – and why are they different from calendar years?

Put down your calendar - You’re travelling in May

New theory behind Stonehenge's true purpose

Is this the world's most expensive advent calendar?

The 2022 Australian Firefighters Calendar is back and better than ever

Watch out! Scammers are now targeting you using Google Calendar

2016 calendar, put together by an aged care facility, will warm your heart

Granny’s funny reaction to hunky fireman calendar

Priest and cat 2016 calendar is hilarious