period of account and a/cing period

Hi, My understanding is that an Accounting Period relates to incorporated Companies and is never longer than 12months. It is the period that Corporation Tax is calculated for. A Period of Account relates to sole-traders, partnerships and unincorporated businesses. They are usually 12months but the individual may choose to have a longer or shorter period of account. Sarah

Thanks sarah

As Sarah has said Corporation tax specifically defines for a company the period of account and the chargeable accounting period (see OT course notes chapter 15 section 1.2 definitions). Either term may be used for the unincorporated trader to simply describe the period for which the business prepares its accounts