It stands for fiscal year option/ financial year option; an option that allows an entity to change its financial year (reporting year) to accommodate certain seasonality effects in business cycles. For example, an entity may select to change its fiscal year from one starting 1 January and ending 31 December to another starting 1 July and ending 30 June.
An entity’s fiscal year (FY) always covers the span of a 12-month period.
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