Special Purpose Frameworks

Question 1

Other Comprehensive Basis of Accounting (OCBOA)

Answer 1

Statement of Cash Flows is not usually prepared. Statements are descriptive about what basis of accounting has been used. This will usually mean a descriptive title, or a title you’re used to, with the addition of the basis used in the title such as “Statement of Assets and Liabilities - Modified Cash Basis”

Question 2

Cash Basis of Accounting

Answer 2

Revenue is when cash is received and expenses are when cash is spent. There isn’t really a balance sheet under pure cash accounting and an income statement would be titled “Statement of Cash Receipts and Disbursements”

Question 3

Modified Cash Basis of Accounting

Answer 3

This is the cash basis plus a few elements of accrual accounting usually by Capitalizing and depreciating assets of recognizing accounts receivable and accounts payable, and accruing income taxes due.

“Statement of Assets and Liabilities- Modified Cash Basis” and “Statement of Revenues, Expenses, and Retained Earnings - Modified Cash Basis”

Question 4

Tax Basis of Accounting

Answer 4

Presents the information based on tax rules. There is a range of reporting certain aspects from cash basis to full accrual.

“Statement of Revenues and Expenses - Income Tax Basis”

Question 5

Regulatory Basis

Answer 5

A title would be “Statement of Income - Regulatory Basis”