[Code of Federal Regulations]
[Title 29, Volume 9]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 29CFR2520.104-50]

[Page 421-422]
 
                             TITLE 29--LABOR
 
 CHAPTER XXV--EMPLOYEE BENEFITS SECURITY ADMINISTRATION, DEPARTMENT OF 
                                  LABOR
 
PART 2520_RULES AND REGULATIONS FOR REPORTING AND DISCLOSURE
--Table of Contents
 
    Subpart D_Provisions Applicable to Both Reporting and Disclosure 
                              Requirements
 
Sec. 2520.104-50  Short plan years, deferral of accountant's examination 
and report.

    (a) Definition of ``short plan year.'' For purposes of this section, 
a short plan year is a plan year, as defined in section 3(39) of the 
Act, of seven or fewer months' duration, which occurs in the event that:
    (1) A plan is established or commences operations;
    (2) A plan is merged or consolidated with another plan or plans;
    (3) A plan is terminated; or
    (4) The annual date on which the plan year begins is changed.
    (b) Deferral of accountant's report. A plan administrator is not 
required to include the report of an independent qualified public 
accountant in the annual report for the first of two consecutive plan 
years, one of which is a short plan year, provided that the following 
conditions are satisfied:
    (1) The annual report for the first of the two consecutive plan 
years shall include:
    (i) Financial statements and accompanying schedules prepared in 
conformity with the requirements of section 103(b) of the Act and 
regulations promulgated thereunder;
    (ii) An explanation why one of the two plan years is of seven or 
fewer months' duration; and
    (iii) A statement that the annual report for the immediately 
following plan year will include a report of an independent qualified 
public accountant with respect to the financial statements and 
accompanying schedules for both of the two plan years.
    (2) The annual report for the second of the two consecutive plan 
years shall include:
    (i) Financial statements and accompanying schedules prepared in 
conformity with section 103(b) of the Act and regulations promulgated 
thereunder with respect to both plan years;
    (ii) A report of an independent qualified public accountant with 
respect to the financial statements and accompanying schedules for both 
plan years; and
    (iii) A statement identifying any material differences between the 
unaudited financial information relating to, and contained in the annual 
report for, the first of the two consecutive plan years and the audited 
financial information relating to that plan year contained in the annual 
report for the immediately following plan year.
    (c) Accountant's examination and report. The examination by the 
accountant which serves as the basis for the portion of his report 
relating to the first of the two consecutive plan years may be conducted 
at the same time as

[[Page 422]]

the examination which serves as the basis for the portion of his report 
relating to the immediately following plan year. The report of the 
accountant shall be prepared in conformity with section 103(a)(3)(A) of 
the Act and regulations thereunder.

[46 FR 1265, Jan. 6, 1981]