cash basis accounting

• Cash basis accounting

• IRS addresses LLC issues in Delaware statute and cash-basis accounting.

Limited liability companies IRS rulings are starting to settle tax issues involving the use of limited liability companies (LLCs). They issued a letter ruling on LLCs in Delaware, clarifying the classification of partnerships and corporations. Some of the tests involved in classifying a LLC as a corporation include continuity of life, centralization of management, limited liability and free transferability of interest. The IRS also ruled to allow a LLC to use cash-basis accounting since it was not deemed a tax shelter.

• The Tax Adviser
• Vol. 24 Nbr. 8, August 1993

• Transitioning From Current Basis to Full Accrual Basis of Accounting for Governments in Developing Countries

In the past, most governments throughout the world maintained their budget and accounting systems on a cash or near-cash basis of accounting. However, many of these governments are in the process of transitioning to the accrual basis of accounting to identify the value of assets owned and total liabilities owed. To provide accounting standards for these governments throughout the world, the International Public Sector Accounting Standards (IPSAS) Board has been established by the International Federation of Accountants. This article discusses a stepwise approach that can be used by developing countries to assist in the transition. The steps are: 1. reporting entities, 2. accounting for cash, 3. optional disclosures under Part 2 of the Cash Basis IPSAS, and 4. miscellaneous optional disc...

• Journal of Government Financial Management, The
• Vol. 56 Nbr. 3, October 2007

• Accounting Methods

... methods used for record-keeping: the cash basis and the accrual basis. Small business owners...

• Encyclopedia of Small Business
• A-I

• 34 CFR 668.28 - Non-title IV revenue (90/10).

...(2) Cash basis accounting. Except for institutional loans m...

• Code of Federal Regulations - Title 34: Education

• No More Irrational Promises

In the editorial "Stopping the spendathon" (Aug. 9), The Washington Times discusses steps the new joint committee on deficit reduction must take to restore fiscal balance. Consider this: In an attempt to curry favor with constituents, Congress, from which this committee has been formed, promised well more than was affordable. In fact, Congress hid the cost and explosive effect on the deficit that these promises created. This criminal obfuscation was possible because the federal government continues to use a "cash basis" of accounting, which hides the true cost of these policies.

• The Washington Times
• August 16, 2011

• Shalala v. Guernsey Memorial Hospital, 514 U.S. 87 (1995)

... resulted in a "defeasance" loss for accounting purposes, respondent health care provider (hereina...'s cost data be based on the accrual basis of accounting-does not mandate reimbursement accor... the method required of cost providers from "cash basis" accounting (under which revenue is reported...

• U.S. Supreme Court

• FASB 106's deferred tax implications: FASB Statement no. 109 adds another wrinkle to accounting for postretirement benefits.

Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Statement no. 106 will require reporting of postretirement benefits to change from cash basis accounting to accrual accounting, and this change will trigger application of deferred tax asset rules under FASB Statement no. 109. Statement no. 109 requires an offsetting valuation allowance for deferred tax assets when tax basis and accounting basis differ. The change to accrual accounting is likely to increase net periodic postretirement benefit cost on the company's balance sheets.

• Journal of Accountancy
• Vol. 178 Nbr. 4, October 1994

• Meet 'Joe the Accountant'

'TRYING TO LIGHT A FIRE' In citizens' workaday lives, There's a lot of things that people worry about before they get to these big numbers, said DioGuardi, having cited the federal government's $53- trillion unfunded liability for the Social Security and Medicare- programs alone. STILL PUSHING FOR CHANGE In speeches and editorial-page letters this fall, the accountant has returned to the reformist theme of his book: the federal government needs to switch from its "Mickey Mouse" cash accounting system to the accrual basis that is the standard for professional accountants and required of publicly traded companies by the Securities and Exchange Commission. Why aren't they calling in the independent outside accountants so that we know what our losses are? At both the state and federal lev...

• Westchester County Business Journal
• August 29, 2009

• Managed health care accounting.

Particular issues such as accounting method choice are arising in the evolving health care industry, and accountants with physicians or managed care providers as clients need to be aware of the tax and accounting implications of these changes. Health maintenance organizations and managed care plans have arisen as attempts to involve providers in risk sharing and cost control. Cost-control incentives will only be effective when physicians have proper information. An example demonstrates how cash-basis accounting can provide an inaccurate picture of cost-containment.

• Journal of Accountancy
• Vol. 179 Nbr. 4, April 1995

• A change in accounting method from cash to accrual: new revenue procedures use incentives to encourage voluntary compliance.

The Tax Reform Act of 1986 was a step towards forcing the use of the accrual accounting method instead of the cash basis accounting method. Those using cash accounting are advised to convert voluntarily while they may still do so to their advantage. The issues of conflicts between tax law and accounting principles, benefits and drawbacks of voluntary or required change and incentives to seek a change in method under three Revenue Procedures are presented.

• The Tax Adviser
• Vol. 24 Nbr. 2, February 1993