Accrual Accounting
In the next video of this series, Saket outlines the two methods of accounting to recognise transactions, the accruals basis and the cash basis.
Overview
There are two methods of accounting to recognise transactions – cash basis and accrual basis. The difference between cash basis and accruals basis of accounting arises when there is a time lag between when transactions happen and related cash receipt or payment.
Key learning objectives:
What is the difference between cash and accrual basis of accounting?
What basis of accounting is used by the entities in the private sector?
Summary
Expert
Saket Modi
Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.
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