Change in method Clause Samples
The "Change in method" clause defines the process and conditions under which a party may alter the way a particular task or obligation is performed under the contract. Typically, this clause outlines the requirements for proposing a change, such as providing written notice and obtaining approval from the other party, and may specify how any resulting adjustments to cost, timeline, or deliverables will be handled. Its core practical function is to provide a structured mechanism for adapting to unforeseen circumstances or improvements, ensuring that both parties have clarity and agreement when modifications to established methods are necessary.
Change in method. In general.
Change in method. X is a C cor- poration using an accrual method that elects to become an S corporation effective Janu- ary 1, 1996. In 1995, X received $5,000 for serv- ices to be rendered in 1996, and properly in- cluded the $5,000 in gross income. In 1996, X properly elects to include the $5,000 in gross income in 1996 under Rev. Proc. 71–21, 1971–2
Change in method. X is a C cor- poration using an accrual method that elects
Change in method. X is a C cor- poration using an accrual method that elects to become an S corporation effective Janu- ary 1, 1996. In 1995, X received $5,000 for serv- ices to be rendered in 1996, and properly in- cluded the $5,000 in gross income. In 1996, X properly elects to include the $5,000 in gross income in 1996 under Rev. Proc. 71–21, 1971–2
(c) Section 267(a)(2) and 404(a)(5) de- ductions—(1) Section 267(a)(2). Notwith- standing paragraph (b)(2) of this sec- tion, any amount properly deducted in the recognition period under section 267(a)(2), relating to payments to re- lated parties, is recognized built-in loss to the extent—
(i) All events have occurred that es- tablish the fact of the liability to pay the amount, and the exact amount of the liability can be determined, as of the beginning of the recognition pe- riod; and
(ii) The amount is paid—
(A) In the first two and one-half months of the recognition period; or
(B) To a related party owning, under the attribution rules of section 267, less than 5 percent, by voting power and value, of the corporation’s stock, both as of the beginning of the recognition period and when the amount is paid.
Change in method. In general. [Reserved]. For further guidance, see § 1.167(e)–1T(a).
Change in method. Parent may at any time change the method of effecting the combination if and to the extent requested by Parent and consented to by the Company (such consent not to be unreasonably withheld or delayed); provided, however, that no such change shall (i) alter or change the amount or kind of the Merger Consideration provided for in this Agreement, (ii) adversely affect the Tax treatment of the Company’s stockholders as a result of receiving the Merger Consideration or the Tax treatment of either party pursuant to this Agreement, or (iii) impede or delay consummation of the transactions contemplated by this Agreement, and in the case Parent proposes a change of the type referred to in clause (i), (ii) or (iii), the Company may withhold its consent in its sole discretion.
Change in method. In general. Any change in the method of computing the depreciation allowances with respect to a particular account (other than a change in meth- od permitted or required by reason of the operation of section 167(j)(2) and § 1.167(j)–3(c)) is a change in method of accounting, and such a change will be permitted only with the consent of the Commissioner, except that certain changes to the straight line method of depreciation will be permitted without consent as provided in section 167(e) (1), (2), and (3). Except as provided in paragraphs (c) and (d) of this section, a change in method of computing depre- ciation will be permitted only with re- spect to all the assets contained in a particular account as defined in § 1.167(a)–7. Any change in the percent- age of the current straight line rate under the declining balance method, as for example, from 200 percent of the straight line rate to any other percent of the straight line rate, or any change in the interest factor used in connec- tion with a compound interest or sink- ing fund method, will constitute a change in method of depreciation. Any request for a change in method of de- preciation shall bemade in accordance with section 446 and the regulations thereunder and shall state the char- acter and location of the property, method of depreciation being used and the method proposed, the date of acqui- sition, the cost or other basis and ad- justments thereto, amount recovered through depreciation and other allow- ances, the estimated salvage value, the estimated remaining life of the prop- erty, and such other information as may be required. For rules covering the use of depreciation methods by acquir- ing corporations in the case of certain corporate acquisitions, see section 381(c)(6) and the regulations there- under.