As per the expanded guidance introduced in ASU 2013-07, an entity is required to prepare its financial statements using the liquidation basis of accounting
whenever liquidation is imminent, that is, when the likelihood is remote that the entity will return from liquidation, and a plan for liquidation is either 1) approved by the person or persons with the authority to make such a plan effective when the likelihood that its execution will be blocked by other parties is remote or 2) imposed by other forces, such as in an involuntary bankruptcy proceeding (ASC 205-30-25-1 and--2).
* lack of clarity among lenders as to the basis of accounting
applied in the preparation of compiled financial statements.
'We have also set-up a technical committee on the development of guidelines on Identification and Valuation of Legal Assets acquired prior to the commencement of IPSAS Accrual Basis of Accounting
for presentation on the general purpose financial statements,' He stated.
which would entail a transition from cash basis of accounting
to accrual basis of accounting
Along with a new co-author, this edition includes an Excel tutorial; discussion of the new health care reform law and its financial issues, the International Financial Reporting Standards and their implications for health care management, fair value accounting, the difference between the cash and accrual basis of accounting
, and the Sarbanes-Oxley Act and the COSO (Committee of Sponsoring Organizations of the Treadway Commission) Opinion; simplified discussion of the IRS' Modified Accelerated Cost Recovery System; updated examples; expanded questions and problems; and new charts, graphs, Excel templates, and web-based chapter questions and answers.
* As a special-purpose or other comprehensive basis of accounting
(OCBOA) framework, the FRF for SMEs uses the accrual basis of accounting
and is based on accounting principles that the AICPA staff and task force that developed the framework believe have proven effective over time.
Since the town's previous basis of accounting
was essentially the same modified cash basis required by the program, no significant accounting adjustments were necessary to conform.
23 April 2013 -- US-based The Financial Accounting Standards Board said it has issued an accounting standards update that improves financial reporting by clarifying when and how public and private companies and not-for-profit organizations should prepare statements using the liquidation basis of accounting
"In the absence of that, MoFEP [Ministry of Finance and Economic Planning] used International Public Sector Accounting Standards (IPSAS) on a modified cash basis of accounting
, except where stated," a confident Manibe told PAC members, chaired by Kom Kom Geng.
GAAP provides no guidance to financial-statement preparers on how to assess an entity's ability to continue as a going concern or on when it's appropriate to use one basis of accounting
The statement specifically requires governments to measure most derivative instruments at fair value in their financial statements that are prepared using the economic resources measurement focus and the accrual basis of accounting
. The guidance in the statement also addresses hedge accounting requirements and is effective for financial statements for reporting periods beginning after June 15, 2009.