26 U.S.C. § 811: Accounting provisions

under an accrual method of accounting, or to the extent permitted under regulations prescribed by the Secretary, under a combination of an accrual method of accounting with any other method permitted by this chapter (other than the cash receipts and disbursements method). in accordance with the method regularly employed by such company, if such method is reasonable, and in all other cases, in accordance with regulations prescribed by the Secretary. In the case of any bond (as defined in section 171(d)), the amount of bond premium, and the amortizable bond premium for the taxable year, shall be determined under section 171(b) as if the election set forth in section 171(c) had been made. In no case shall the amount of premium on a convertible evidence of indebtedness include any amount attributable to the conversion features of the evidence of indebtedness. interest to which section 103 applies, or original issue discount (as defined in section 1273). a reserve to be established for any item unless the gross amount of premiums and other consideration attributable to such item are required to be included in life insurance gross income, the same item to be counted more than once for reserve purposes, or any item to be deducted (either directly or as an increase in reserves) more than once. exceeds the interest rate in effect under section 808(g) for the contract for such period, and is guaranteed beyond the end of the taxable year on which the reserves are being computed, If any return of a corporation made under this part is for a period of less than the entire calendar year (referred to in this subsection as “short period”), then section 443 shall not apply in respect to such period, but life insurance company taxable income shall be determined, under regulations prescribed by the Secretary, on an annual basis by a ratable daily projection of the appropriate figures for the short period.