How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 117460
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
Type Your Business Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

How does a housing cooperative or other corporation change

This answer was rated:

How does a housing cooperative corporation or other corporation change its acrual-form of accounting and other similar matters?

There is no law on how they must do this, as you have likely read. Typically, the entity will make the change at the end of their tax year for their next tax year. This is generally a decision of the board of directors, unless the bylaws specify the members must vote on this, and it is usually based on the recommendation of their accountant. The decision on which method of accounting to use is discretionary to the entity and their accountants as to what is best for the organization.

I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.

If you did not get all of the information you may have wanted PLEASE USE THE REPLY TO EXPERT LINK IF YOU HAVE FOLLOW UP QUESTIONS AND NOT THE FEEDBACK BUTTON FOR BAD SERVICE. PLEASE CLICK ON “OK,” “GOOD” or “EXCELLENT” SERVICE. Kindly remember to ONLY rate my answer when you are fully satisfied. If you feel the need to rate anything less than OK, please stop and reply to me via the or REPLY TO EXPERT button with whatever issue or clarification you may need.

Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.


There can also be a delay of an hour or more in between my answers because I may be helping other customers or taking a break.

You can always request me through my profile at or beginning your question with “For PaulMJD…”

Law Educator, Esq. and 2 other Business Law Specialists are ready to help you
Customer: replied 4 years ago.

Paul; If a corporation changed before from a cash-basis form of accounting
to an acrual form, can it switch back to a cash-form relatively easy cash-wise?

Yes, they can change back and forth at any time. It may make a nightmare for the accountant (which is what the accountants for the clients I represent tell me) but they can change to whichever is best for the entity.
Customer: replied 4 years ago.

Paul, "Is it a lot easier for a corporation to change from a cash-basis form of accounting to an acrual form than the other way round?"

Honestly, I can only tell you that the accountants I deal with say it makes no real difference to them, but that is likely their personal opinion and as I am not an accountant I cannot tell you from first hand knowledge.
Customer: replied 4 years ago.

It appears to me that if a housing corporation doesn't buy and sell sell things but just gets monthly income from its shareholders and parking-rental fees from them, and its expenses are only for running that corpration, cash-basis accounting is better than the acrual method of accounting?!

It is certainly the easiest method of accounting, but without reviewing all of the books nobody can really determine which method is best for the organization.