Common use of Measurement Dates Clause in Contracts

Measurement Dates. (i) In general. If a taxpayer uses the taxable year as the computation period, measurement dates must occur at quarterly or more frequent regular intervals. If the tax- payer uses computation periods that are shorter than the taxable year, measurement dates must occur at least twice during each computation period and at least four times during the tax- able year (or consecutive 12-month pe- riod in the case of a short taxable year). The taxpayer must use the same measurement dates for all designated property produced during a computa- tion period. Except in the case of a computation period that differs from the taxpayer’s regular computation pe- riod by reason of a short taxable year (see paragraph (f)(1)(i) of this section), measurement dates must occur at equal intervals during each computa- tion period that falls within a single taxable year. For any computation pe- riod that differs from the taxpayer’s regular computation period by reason of a short taxable year, the measure- ment dates used by the taxpayer dur- ing that period must be consistent with the principles and purposes of section 263A(f). A taxpayer is permitted to modify the frequency of measurement dates from year to year.