Can financial statements be prepared using other comprehensive basis of accounting (OCBOA)?
No CPAs may not prepare financial statements using OCBOA (i.e. cash basis and tax basis.) All financial statements must be prepared using MHDC guidelines and Generally Accepted Accounting Principles (GAAP). GAAP accounting is the concept of the matching principle. This means that revenues should be matched with expenses and vice versa. Transactions should be recorded when economic events occur in addition to when cash is transferred.
Related Questions
- When the first interim financial statements are prepared under the Indian Accounting Standards converged with IFRS, under which standards will the comparative ones be presented?
- How might an enterprise describe the basis of accounting used to prepare the financial statements?
- Can financial statements be prepared using other comprehensive basis of accounting (OCBOA)?
