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Extension of A/c Period

Raj (Article) (72 Points)

22 March 2009

In what situations can a company increase the accounting period from 12m to 15m... for how many years can this go on.

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6 Replies

deepak K Gujrati (CA-practice) (966 Points)
Replied 22 March 2009

I Think this can be first year of incorporation. In the first year if there is no trading transaction in the first three months. Also Capital expenses/preoperative expenses will be carried forward and a consolidated balance sheet can be prepared. I dont think there is any other situation where period of accounts can be extended.

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There can also be other cases viz....If a Company changes its Accounting Period as per Companies Act, it can prepare its Accounts for more than 12 months but not 15 Months.

>>Vipul Garg

Raj (Article) (72 Points)
Replied 23 March 2009

Originally posted by :Vipul Garg
"	There can also be other cases viz....If a Company changes its Accounting Period as per Companies Act, it can prepare its Accounts for more than 12 months but not 15 Months. >>Vipul Garg	"

Ok. What you mean is in the case of changing accounting period say from year ended 31st Dec to 31st March for the first year of change you have to prepare for 15 months. I think you're right. It makes logical sense.

Raj (Article) (72 Points)
Replied 24 March 2009

Nope.. We are wrong..

Take the case at this website https://www.bseindia.com/qresann/news.asp?newsid={78696CEE-E9AF-441F-94E4-C62898D823B2}¶m1=1

Asian Hotels, an operating company has changed its Financial year 2008-09 to 15 months from April 01, 2008 to June 30, 2009 by decision of the Board of Directors

Any explanations for this?

CA.M.V.RAMACHANDRA RAO (CHARTERED ACCOUNTANT) (188 Points)
Replied 08 September 2011

We can extend the accounting period in other cases also- like company wants to buyback of its shares and for that it must have reserves. In this the Roc can demand the books for 15 months instead of 12 months. In such you have to--