At the beginning of 2006, FASB and IASB came together to reconcile lease accounting standards with the objective to synchronize the lease reporting between GAAP and IFRS. The joint project came to its culmination with two new standards: IASB’s international standard (IFRS 16, Leases) and the U.S. GAAP standard (FASB’s Accounting Standard Update (ASU) No. 2016-02 Leases, Topic …
You might have learned the terms Cash-Basis and Accrual-Basis on various occasions and might be wondering what those terms mean and how the two accounting treatments affect businesses and decision-making. Below is the summary of the definitions, applications, and key pros and cons of both methods. Cash-Bases The most straightforward advantage of the cash-basis approach …
This is a fairly common problem, especially if the company you are dealing with is a small yet rapidly growing business. In short, there really aren’t any accounting records, there are just source documents. Or, someone might have tried to keep the books, but they had no idea what they were doing, so the accounting …
