The new tangible property regulations will require most taxpayers to adopt multiple changes in accounting methods
You must make these accounting method
decisions specifically for bonds prior to Dec.
964 provide guidance for a foreign corporation's adoption of accounting methods
for purposes of determining E&P.
A taxpayer may generally choose any permitted accounting method
(see Chapter 10) when filing the taxpayer's first tax return.
We believe taxpayers deserve finality in respect of their accounting methods
. If ruling protection is not to be accorded to taxpayers as a result of filing an application for a change in method under the standard consent process, then, at a minimum, ruling protection should be accorded either upon examination of the change in method or upon the running of the statute of limitations for the year of change.
Such products are priced on the assumption that they will earn a higher return than the "risk-free rate"--the rate on government bonds--but under a fair-value accounting method
, they would likely be marked to market at the risk-free rate, lower than their assumed value, said Doll.
To provide evidence on how debt contracts affect the sign of voluntary changes that borrowing firms make in their accounting methods
, we identify a sample of borrowers with material bank debt who have chosen to make accounting changes.
Yet even if there is no perfect accounting method
, that doesn't mean we can't start asking the right questions.
One option is to examine the various accounting methods
that they are using--not just the overall method of accounting (cash or accrual), but the specific accounting methods
or elections available to certain items or issues.
An accounting method
affects when an item of income or deduction is recognized.
Taxpayers have some latitude when choosing an accounting method
as long as the method clearly reflects income.
A taxpayer's accounting methods
determine the time for reporting income and expenses.