Public Ruling No. 1/2001 Ownership of Plant and Machinery for the ...

1• IRB (Inland Revenue Board) Guidelines and Rulingswhich the accounts are closed.Example:A co-operative commences business on 01.07.2001 and itsfirst accounts are prepared for the period 01.07.2001 to30.06.2002.The accounting period 01.07.2001 to 30.06.2002 is the basis period forthe y/a 2002. There is no basis period for the y/a 2001.3.5.3 Accounts prepared for less than or more than 12 monthsand not ending on 31 DecemberWhere a co-operative commences business and its firstaccounts are made up for less than or more than 12months not ending on 31 December, the basis period fora year of assessment is the year ending on 31 Decembereach year until accounts are made up for a 12-monthaccounting period.Example 1:A co-operative commences a business on 26.06.2001 and itsaccounts are made up to 30.04.2002 (>10 months), and subsequentlyto 30.04.2003.The basis period for the y/a 2001 is 26.06.2001 to 31.12.2001.The basis period for the Y/A 2002 is 01.01.2002 to 31.12.2002.The basis period for the Y/A 2003 is 01.05.2002 to 30.04.2003.Example 2:A co-operative commences a business on 26.06.2001 and itsaccounts are made up to 30.09.2002 (>15 months), and subsequentlyto 30.09.2003.The basis period for the y/a 2001 is 26.06.2001 to 31.12.2001.The basis period for the y/a 2002 is 01.01.2002 to 31.12.2002.The basis period for the y/a 2003 is 01.10.2002 to 30.09.2003.3.6 Change of accounting date3.6.1 Normal accounts ending on 31 DecemberWhere accounts are normally closed on 31 December and53