Accounting Period Concept

The life of the business is considered to be indefinite, but the measurement of income cannot be postponed for a very long period of time. Therefore, it is necessary to assess the performance or result of the accounting external reporting at a regular interval.
Hence a period of one year i.e. twelve months is considered as accounting period.
It may be a Calendar year (January to December) Or any period of one year.
In India, the accounting period begins on 1^st April every year and ends on 31^st  March every year. This concept implies that at the end of each accounting period, financial statements i.e. profit & loss account and balance sheets are to be prepared. It helps business to know their performance as well as important for external users like Financial Institutes (Banks etc.), Investors, Government, Suppliers, Customer and other external users who are interested to know the results of a business.