Question

With the Permission of Registrar, the accounting period can be extended up to ________.

Options

• 13 Months

• 13.5 Months

• 18 Months

• 14 Months

Answer 1

With the Permission of Registrar, the accounting period can be extended up to 18 months.

Explanation:

According to the Company Act of 2013, A firm can ask the registrar of the company for special permission to prolong the accounting term up to 18 months.

In accordance with the proviso under section 210(4) of the Companies Act 2013, the Registrar has the authority to extend a financial year for up to eighteen months.  An accounting period cannot be prolonged by more than 18 months, and in most situations, it cannot be extended more than once every 5 years, in order to keep the public record of a company's accounts up to date.