When is the information relating to profits & position collected/derived

Information needs vary from organisation to organisation. Even the information relating to profits and position would also be derived for such periods and on such dates respectively depending on the organisations need or this information.

» Period for which profits are ascertained

The information relating to profits is something that is needed by the organisation periodically. For what period do we try to ascertain profits. Do we think of profits made every day or over a week or over a month or over a six month period or over a year? This is dependent on the information needs of the organisation.
Though theoretically it is possible to derive this information's for any time period, conventionally it is derived for a year. That is in most cases, information relating to profits is derived over a year. We think of profits made over a year.

» Day on which position is ascertained

The information relating to the position may be needed by the organisation at many points of time. Theoretically this is also capable of being derived at any point of time we need it. However, conventionally it is derived at a point which indicates the end of the period for which the profits are ascertained. Say if we think of profits made for the period from 1st April 2005 to 31st March 2006, we think of deriving the position as on 31st March 2006.