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Explore examples of these accounting terms in real-life situations. When there is no discernible natural business year, many businesses tend to adopt the calendar year as their official fiscal year. Except where mandated by the government, a company can select any fiscal year it wants. The use of the natural business year as the fiscal year is recommended, but a company can certainly use other dates. For the past 52 years, Harold Averkamp (CPA, MBA) hasworked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online.
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- It determines when a company reports its earnings and pays taxes.
- Third, the reported activities of the NBY Committee of the AIA/AICPA (American Institute of Accountants became the American Institute of Certified Public Accountants in 1957) were reviewed as further background for the article.
- He concluded that a company switching to a NBY should be treated no differently by the IRS than a company which adopts a NBY upon formation