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Definition

In terms of section 27 of the Companies Act (71 of 2008), every company is required to have a financial year-end which is the end of its accounting period. By paying a fee and lodging the prescribed form with the Companies and Intellectual Properties Commission, a company can change its financial year to six months earlier or later. Usually this is done after a merger or takeover so that the accounting periods of the two companies coincide. For example, Marshall Monteagle (MMP) changed its financial year-end from 30th September to 31st March resulting in its having an 18-month financial year in the period to 31st March 2022. This impacted comparisons with the 12-month period to 31st March 2023.

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