proaches taken by IASC and FASB in setting ac
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Describe the differences in approaches taken by IASC and FASB in setting accounting standards.
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Step 1
Accrual Principles -
This idea states that accounting transactions should be documented in the accounting periods in which they actually happen rather than in the periods in which there are accompanying cash flows. The accrual basis of accounting is built upon this. It is crucial for the creation of financial statements that accurately reflect what occurred during an accounting period without being unnecessarily delayed or accelerated by the related cash flows.
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