The difference between accrual basis and cash basis
GAAP * IFRS * IFRS for Small and Medium-sized Entities * FASB's Private Company Council Special-Purpose Frameworks * Income Tax Basis * Cash Basis
* Modified Cash Basis
* Regulatory Basis * AICPA's Financial Reporting Framework for Small and Medium-sized Entities Andrew D.
"The cash basis
and simplified expenses schemes can help save small businesses time and money.
Before assigning the first case, the instructor should review the basic accounting equation and expand the equation to focus on differences between the cash basis
and accrual basis: Add simple matrices that show the additions and subtractions involved with conversion of the cash basis
to the accrual basis.
In the January-October period of 2010, 191 billion TL revenue was collected on a cash basis
and non-interest expenditure was performed as 184.1 billion TL, accordingly, primary surplus registered as 6.8 billion TL.
Watson said that the fourth quarter results are in line with its 13 January 2010 projection, after taking into account the exclusion of USD22.2m (USD0.12 per share) in amortisation expense for adjusted cash basis
Categories: Financial Management, Accounting standards, Auditing procedures, Auditing standards, Cash basis
accounting, Financial analysis, Financial management, Financial records, Financial statement audits, Financial statements, Internal audits, Internal controls, Strategic planning, Voluntary compliance
Revenue on the accrual basis is recognized when earned, while under the cash basis
it is recognized when collected.
In addition, the cash basis
IPSAS, Financial Reporting under the Cash Basis
of Accounting, has been updated to include both required and encouraged disclosures that apply to entities that adopt the cash basis
of financial reporting.
Thus, it held the tools have a zero cash basis
, and the entire amount received for them should be treated as capital gain income.
This commonly accepted and appropriate accounting practice, however, artificially inflates the current income statement on a cash basis
Many CCRCs conduct operations on a short-term cash basis
. They pore over last quarter's monthly fee income and cash receipts, but give no thought to the financial viability of the facility over the long-term.