Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Changing of year end - Ice Cream Company

richiebkerryrichiebkerry Settling In NicelyRegistered Posts: 45
A friend has just joined a company who a few months back changed the year end date from a 12 month period to 18 months (the external accountant persuaded the owner of the ice cream company to do this in order for him to hit the submission deadline...think the accountant had personal issues and the MD naively agreed to accommodate). However, the new extended period includes two Winters which is obviously a double hit of a quite period and hugely distorts any meaning trend analysis YoY and surprise surprise delivers a loss.

It's really important to emphasise that the MD agreed in good faith without truly understanding the repercussions. The accounts must be submitted for the 18 month period by the end of December but I was wondering if the company could revert back to the 12 month accounting period? Is this possible and of course I imagine a fine would be payable if it was allowed?

Can anybody help and advise who has been in this unique position before?

Thanks in advance

Richard
Sign In or Register to comment.