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Tagged as: Accounting, cash, Compliant, Gaap
{ 4 comments… read them below or add one }
No. The framework to the IAS states that the accrual basis must be used -
The Framework for the Preparation and Presentation of Financial Statements sets out the underlying assumptions of financial statements:
Accrual Basis. The effects of transactions and other events are recognised when they occur, rather than when cash or its equivalent is received or paid, and they are reported in the financial statements of the periods to which they relate. [F.22]
Going Concern. The financial statements presume that an enterprise will continue in operation indefinitely or, if that presumption is not valid, disclosure and a different basis of reporting are required. [F.23]
nope
No.
Cash accounting is allowed for small companies for tax purposes, but accrual accounting is required of companies over $10 million in revenue (and sometimes for companies over $1 million) for tax purposes, and many financial institutions require accrual accounting, as do all stock exchanges.
yes