 Hello in this discussion question we will discuss the question of discuss the importance of periodic reporting and the time period assumption. When seeing an essay question such as this we may want to apply them first to the major components the major output the major thing that we are preparing when thinking about financial accounting those being the financial statements and how these two concepts will apply to it so we want the importance of the periodic reporting that of course can be applied directly to financial statements and then this period assumption what do we mean by the period assumption so periodic reporting we can think of as we're breaking things up into periods into reporting something typically being months or years therefore the reports are going to be reported for the month ended and or the year ended now that's going to be important because we know that the accounting process obviously goes on forever the process never ends and we are basically artificially breaking this process into periods into chunks in order to help us to get relevant information and the period assumption assumes that we can do that the period assumption assumes that in order to get reliable and timely information we can break out this information from a continuous set of data to chunks and then be able to analyze those particular chunks when looking at that in terms of the of the financial statements then we could look at the two types of financial statements and how that would apply when we look at the balance sheet of course we have for a period and it's going to be as of the end of the time period and so that shows us where we are at a point in time it might be easier to see this time period assumption when looking at a timing statement like the income statement or the statement of equity which has a beginning and ending period and that's where we can clearly see these timing differences we're going to really try to apply the revenue and expenses to the correct time period and therefore be able to know exactly where everything is is going for that particular time period and then create the reports for that time and then be able to make decisions based on those reports when we look at the adjusting process of course that's going to apply to this concept a lot because at the end of the time period that's the whole point of the adjusting process to make sure that we have the proper revenue and expenses applied to the proper time period in order for the reporting to be correct