Before discussing conversion of cash basis
financial statements, review the basics of the accounting equation that involve increases and decreases in total assets (see Table 1a).
9 CASH BASIS
PERFORMANCE BASED ON OPERATING EARNINGS (1)(3) Cash basis
operating earnings $477 $449 6.
Some nonprofits rectify this by using a modified cash basis
At a minimum, though, the case does not stand for the proposition that a service taxpayer that keeps its books on the accrual basis is prohibited from using adjusting entries to convert to the cash basis
for tax purposes.
A detailed reconciliation of the Company's adjusted cash basis
net income or loss, which is a non-GAAP financial measure, to net income or loss under GAAP is included in the schedules to this press release.
Fitch's ratings reflect RLI's consistently strong underwriting profitability, moderate financial leverage, and strong earnings-based and cash basis
Modifications to the "pure" cash basis
of accounting are acceptable it they are equivalent to the accrual basis and the modifications are logical.
As an example of these built-in gain and loss provisions, in the case of a cash basis
personal service corporation that converts to S status and that has receivables at the time of the conversion, the receivables, when received, are built-in gain items.
Special reports for cash basis
statements, profit participation, report on a statement of assets sold and liabilities transferred, reporting on the application of accounting principles, royalty reports
In certain situations, a corporation may benefit from a change in accounting method; for example, if an accrual-basis C corporation provides services on account, with payment received weeks or months after billing, a change to the cash basis
would allow it to defer income recognition until receipt of payment.
Chaim Katzap of CB Commercial advised the church in this transaction which was contracted and closed in less than 30 days and was sold on an all cash basis
, modified cash basis
and regulatory basis financial statements for various kinds of entities