Redirected from Financial year
Companies that are units within a "group" of businesses must all use the same fiscal year, otherwise it would be possible to shift entries between units with different fiscal years, so the same resources would be counted more than once or not at all, making the annual report of the group's finances misleading.
In the "Enron scandal" in the U.S. in 2001-2002, that energy conglomerate was discovered to have gotten around the laws to prevent that kind of fraud by setting up dummy businesses that passed the bookkeeping entries back and forth, increasing their size on each pass, thus shifting the bogus numbers in space instead of in time.
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