The revenue procedures generally set rules for obtaining automatic consent to change to those accounting methods
provided in the repair regulations.
Further, since taxpayers adopt accounting methods
on a trade or business basis (see Regs.
2008-52 relating to the automatic consent procedures by which taxpayers may obtain the IRS Commissioner's consent to make changes in accounting methods
that are described in the revenue procedure's appendix.
The new accounting method
allows the limited partnership -- and by extension, Life Partners -- to record the life settlements at their cost.
These revenue procedures encourage taxpayers to adopt permissible accounting methods
and correct impermissible methods.
The Sixth Circuit Court of Appeals recently upheld a Tax Court finding that the consistent omission of a step when computing inventory cost under the dollar-value LIFO method was a change in accounting method
rather than a mathematical error.
1, 1992, decreased previously reported 1992 third quarter income before cumulative effects of changes in accounting methods
by $1,378 ($.
Like many companies in the retail and restaurant industries, the company is reviewing its lease accounting methods
in light of the new clarification of generally accepted accounting principles provided by the Office of the Chief Accountant of the Securities and Exchange Commission on Feb.
That is, accounting methods
generally result from temporary (not permanent) differences to lifetime income, and these differences reverse in the succeeding tax year or years.
Likewise, the court ignored the company's change in accounting methods
since the new revenue ruling had mandated it.
On May 15, 1998, the Internal Revenue Service released Notice 9831, which contains a draft of a proposed revenue procedure that, when promulgated, will govern changes in accounting methods
initiated by the IRS under the authority of section 446(b) of the Internal Revenue Code.
The company's first fiscal year 1994 net income and earnings per share, reflecting the cumulative effect of change in accounting methods
, was therefore $1,390,000 and 28 cents per share respectively.
Fannie Mae (1) applied accounting methods
and practices that do not comply with GAAP in accounting for the enterprise's derivatives transactions and hedging activities, (2) employed an improper 'cookie jar' reserve in accounting for amortization of deferred price adjustments under GAAP, (3) tolerated related internal control deficiencies, (4) in at least one instance deferred expenses apparently to achieve bonus compensation targets, and (5) maintained a corporate culture that emphasized stable earnings at the expense of accurate financial disclosures.
381 provides guidelines for the carryover of certain tax attributes, including accounting methods
, in certain corporate reorganizations or liquidations.
Other taxpayers--otherwise eligible to use the cash method--may have elected to use the accrual method in a previous period and may want to change their overall accounting methods
to the cash method.