Reporting Period & Conversion Period
The reporting period is usually a 12 month period ending 30 June each year. At the end of each financial year the profit and loss account balance is transferred to the Retained Earnings account in the Balance Sheet (under Equity). A new profit and loss account is started for the new financial year
The Balance sheet is continuous, the Profit and Loss account is just for the current financial year
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The conversion period is the month in which you transfer over to a new accounting system. If you are transferring to a new accounting system at the beginning of a financial year, the final balance in the profit and loss account would be transferred to the new system (retained earnings account) along with all of the current balance sheet account balances.