Originally Posted by akumar101
Can the first accounting year of a LLC company be more than 12 months - our company was set up on 24th feb 2015 - can we end our first accounting year on 31st March 2016.
Yes; Every taxpayer ,individuals, business or etc. must figure taxable income on the basis of an annual accounting period called a tax year. An accounting period is the period of time covered by a financial statement or set of financial statementsin general, an accounting period for corp tax purposes is normally the same as for a company's statutory accounts. However, there are circumstances when they are different. For instance when trade commenced during the year; or when a company extends its accounting period and it is more than 1 year. 2 tax returns and tax computations are normally completed when a company's accounting period has been extended and exceeds 12 months. The first is for the first 12 months of the period and the second for the remainder. Numbers such as profit per the accounts can be apportioned between the returns on a time basis.2 additional workbooks need to be created for the 2 tax computations The same set of statutory accounts should be attached to both tax returns.
when the normal operating period is less than one year, a one-year period is used to distinguish current assets from noncurrent assets.