What are implications of Casella Waste Systems changing its year end from April 30 to December 31? Original blog posting (July 2, 2014)

Casella Waste Systems Operating in eastern U.S. Current fiscal year end is April 30 Severe spring weather can impact financial statements; management would rather deal with it at beginning of year Changing fiscal year end to December 31

Question 1 What stakeholders (entities) will be effected by the change in year end? Explain how each of these stakeholders will potentially be impacted.

Question 2 What are the advantages to the change in year end? What are the disadvantages?

Question 3 Is Casella permitted by U.S. GAAP to change its year end from April 30 to December 31? What accounting characteristic would this change of year end normally violate?

Question 4 Casella will be required to provide restated financial information for the revised year end. Why is it required to provide this financial information?

Question Recap What stakeholders (entities) will be effected by the change in year end? Explain how each of these stakeholders will potentially be impacted. What are the advantages to the change in year end? What are the disadvantages? Is Casella permitted by U.S. GAAP to change its year end from April 30 to December 31? What accounting characteristic would this change of year end normally violate? Casella will be required to provide restated financial information for the revised year end. Why is it required to provide this financial information?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Related video resources can be found at http://www.youtube.com/user/accountingheadlines Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu