A 12 month period over which a firm budgets its spending.
A fiscal year does not always begin in January and end in December; it may run over any period of 12 months.
The fiscal year is referred to by the date in which it ends. For example, if a company's fiscal year ends October 31, 2012, then everything between November 1, 2010 and October 31, 2012 would be referred to as FY 2012.
Not using the actual calendar year gives many companies an advantage, allowing them to close their books at a time which is most convenient for them.
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