* The tangible property regulations will require most businesses to change their accounting methods
beginning with the 2014 tax year.
In fact, one best practice advisors should implement is to double-check the default accounting methods
that are selected at the individual account level.
CalCPA, AICPA and other state societies have written to members of Congress urging them to oppose the limiting of accounting methods
as an unnecessary administrative and financial burden on CPA firms and other businesses.
Like domestic taxpayers, foreign corporations are subject to the general rules regarding the adoption of permissible accounting methods
for items of income and expense, subject to certain rules in Regs.
In general, a taxpayer may change accounting methods
only with the permission of the IRS.
Citing as "unduly burdensome" new Internal Revenue Service requirements to modify all Forms 3115 in progress to comply with new rules on changing accounting methods
the AICPA d issued a comment letter to the Internal Revenue Service requesting they allow for transition time.
In Notice 2007-88, the IRS describes a proposal to streamline the process for securing the Commissioner's consent for changes to a taxpayer's accounting methods
while preserving the ability of the IRS to effectively monitor those changes.
A drop in PDVSA's efficiency from the mid-1990s had been partly due to its internationalisation policy and a change in its accounting methods
. In 1989, PDVSA adopted a worldwide accounting method
so that costs and losses outside Venezuela would be balanced against income and profits in Venezuela.
"Its use of alternative accounting methods
necessitates detailed rules to limit the extent to which management can defer losses and manage earnings by the selective recognition of gains and losses, and compromises our primary objective of providing principle-based accounting standards."
Watts and Zimmerman (1986, 216-217) argue that debt contracts that make covenant thresholds a function of financial ratios give borrowers an incentive to change accounting methods
to avoid costly covenant violations.
Estimates of their unfunded liabilities are difficult to come by, since different jurisdictions use different accounting methods
These revenue procedures encourage taxpayers to adopt permissible accounting methods
and correct impermissible methods.