diploma in bookkeeping the accounting equation
TRANSCRIPT
T-accounts
References
3
BOOKKEEPING
Introduction Positive human interaction is underpinned by sound principles. It provides a compass for what is right and what is wrong. It guides us to have the best experience, make better decisions and put our best foot forward, every day. When in doubt, we always have our principles to fall back on. And like in everyday life, accounting principles guide accountants to make the best decisions to produce the most accurate financial results for a business.
By the end of the lesson, you will: • Be well versed in the fundamental principles of
bookkeeping and be able to apply them in your business or even when assessing your personal finances
• Be able to use the key principles of accounting to record revenue and expenses and when to record it
• Apply the definitions of the income statement and balance sheet elements to be able to calculate net profit and identify assets, liabilities and equity
Lesson outcomes
All the skills acquired in this lesson and the previous lessons will enable you to account for and reflect basic revenue and expenditure transactions using T-accounts.
Practical learning outcome
Key priciples
These principles are taken into consideration with each transaction. There are several basic accounting principles, concepts and assumptions which underpin the day-to-day activities from recording to the preparation of the annual financial statements. This lesson focuses on three of these principles.
The history of accounting
International Accounting Standards (IAS)
Key principle 1: Accrual vs cash basis of accounting
• IFRS is an accounting framework that can be thought of a novel • A novel is made up of chapters and paragraphs • Each chapter covers a single concept with guiding principles and is called an accounting standard • The title of each chapter is International Accounting Standards (IAS), followed by a number for ease of reference • Examples:
o IAS 1 - Presentation of financial statements o IAS 2 – Inventories o IAS18 – Revenue o IFRS 10 – Consolidated financial statements
• Each standard provides guidance on how to account for transactions before a record can even hit the books • An assessment must be done on whether the definition has been met • The standards provide a definition of the elements • Once the definition is met one needs to consider the recognition, measurement, presentation, and disclosure
principles • These principles are linked to the when and how to record a transaction • They form the basis of being able to treat transactions from an accounting perspective in the correct manner • The standards ensure consistency with accounting treatments and minimise grey areas
• This guides us around the timing of when to record a transaction
• The cash basis of accounting allows the monitoring of cash available at any point in time
• As soon as cash is spent it is recorded
• As soon as cash is received it is recorded
• The accrual method looks at when income is earned and when the expenses are incurred, irrespective of money
flowing
• This is the determining factor of when a transaction hits the accounting records
• aka The invoice basis of recording transactions
• It is more acceptable to revenue services such as the IRS in the States to use the accrual basis.
• Though the IRS does permit the use of the cash basis of accounting, barring your business meets certain criteria.
• The cash basis is allowed for smaller businesses, especially sole proprietors and small partnerships
5
BOOKKEEPING
• It is a far easier method for recording transactions and tracking cash movements
• To be fully compliant with IFRS, the accrual basis of accounting must be adopted
• Where there are reporting and regulatory requirements, goods and services are provided on credit or inventory
is carried, the accrual basis must be adopted
• If an audit opinion is required on the annual financial statements, the accrual basis must be used
• Consider the users and uses of the financial statements, and whether local tax implications need to be
considered before selecting an accounting basis
• The accrual basis is more transparent and more stable as it allows the recognition of revenue, irrespective of
whether the cash was received or not
• It provides a more accurate sense of the financial performance of a business
• It enables the assessment of the profitability of a business
• It is easier to identify and monitor trends to better understand cost drivers
Example: The college student from Lesson 1 had a substantial student loan to repay. These loans require monthly
settlements in cash. Whether the student makes the payment or not, he would need to reflect this amount in his
monthly budget or personal income statement as an expense as the obligation still exists.
Key principle 2: Revenue recognition
• When we can recognise revenue
• This principle lends itself to the accrual basis of accounting
• It helps identify when to recognise revenue and whether it should be recognised at all, as well as how much to
record
• The key element of the definition of revenue is that it must have been earned, meaning that you would need to
have given your customer a product or provided your client with the service
Example: With a gardening service, the gardener will tend to the lawn and flowerbeds and at the end of the day, he
would have earned his revenue, having provided the necessary services.
• The second important element is that the revenue must be realised or realisable
Example: If the gardener is paid in cash at the end of the workday, that revenue is realised. If he gives provides
an invoice and allows payments to be delayed to the following week or month the revenue is realisable, as it will
eventually become cash.
Key principle 3: Matching principle
• When we need to recognise specific expenses linked to the revenue recorded
• This principle is another feature of the accrual basis and linked to the revenue recognition principle
• It states that expenses must be matched to the revenue in a financial period
• The underlying question when capturing each expense is “Did this expense contribute to giving rise to the
revenue recorded?” and if yes, the expense can and should be recognised
NOTES
7
BOOKKEEPING
Income statement: Income
• It is a report that reflects the income or revenue earned by the business
• If IFRS is adopted, income will not equal cash receipts as it comprises amounts generated from making sales and
rendering services
• This income will be recorded whether you have received the cash or not
• A key consideration for an amount to be recognised as revenue is that it needs to have been earned during
normal business operations
• aka the top line as it is generally the first value you will see in every income statement
• The definition of revenue per IAS18:7
“the gross inflow of economic benefits such as cash receivables or other assets arising from the ordinary
operating activities of an entity such as sales of goods, sales of services, interest, royalties and dividends.”
• Once an item meets the revenue definition the next step is to satisfy the recognition criteria before recording the
entry
• The flow of associated future economic benefits to the organisation is probable and
• The amount of the sale is reliably measurable
• For this course, economic benefits will be the eventual receipt of the cash into the bank account
• IAS18 provides further guidance for recognising the different types of revenue that will be covered later in this
course
Example: As the gardening services has been performed the client is obligated to pay him for the day and the
amount owed is based on the invoice. From the gardener’s perspective, the flow of cash to him is probable and can
be reliably measured.
Example: In the gardening service, if a profit is made from selling the lawnmower, this will not be classified as
revenue as the core income-generating activity is not to buy and sell lawnmowers.
8
BOOKKEEPING
Scenario 1 Joe’s Business:
He sells homemade bottled lemonade and started his business in May. In June, he had already sold 100 bottles and
he has determined a selling price of three dollars per bottle. He has also been kind enough to allow his customers
extended payment terms so they will only be paying him on the 15th of August.
1. Can he recognise revenue?
2. In which month will he recognise revenue?
3. How much revenue can he recognise?
Joe has adopted IFRS and therefore uses the accrual basis of accounting.
Scenario 2 Mary’s Business:
She started an online business offering a delivery service, delivering flowers. She started her business in February
and managed to deliver 50 bunches of flowers in March. At ten dollars per delivery, she also offers her clients
extended payments and they will be making payment to her on the 1st of April.
1. Can she recognise revenue?
2. In which month will she recognise revenue?
3. How much revenue can she recognise?
Mary has adopted IFRS and therefore uses the accrual basis of accounting.
Scenario 1 Joe’s Business:
1. Yes. Joe is in the business of selling lemonade and he will be earning money from this as he has already sold 100
bottles at his selling price of three dollars per bottle, making the amount due to him probable and measurable.
2. As Joe is using the accrual basis of accounting and the revenue definition and recognition criteria were met in
June, he will they need to record his sale of hundred bottles in June.
3. Joe will be able to recognise $ 300 worth of revenue.
Scenario 2 Mary’s Business:
1. She can recognise revenue as even though the transactions are taking place online. She is in the business of
delivering flowers and once the deliveries have been fulfilled, the money becomes due to her. It is probable as
they will pay her in April and as her selling price is ten dollars per delivery we can reliably measure her revenue.
2. Her revenue was earned in March.
3. As this is when the definition and recognition criteria were satisfied, she can reliably record revenue of $ 500 in
her income statement in March.
Exercise 1:
Income statement: Expenses
• With the accrual basis, expenditure will not equal the cash payments being made as expenses need to be
recognised when incurred to make a sale or render a service
• The expense must have been incurred in the normal course of operating
• These are called operating expenses
Example: If you need to rent an office space to do the work, rental would be an operating cost. Non-operating costs
such as interest expense will be incurred but are not necessarily linked to the main source of income
• Expenditure also has recognition criteria that need to be satisfied before it can be formally recorded in the
accounting records
• The criteria are the same, except in the case of the future economic benefits, which will be in the form of
probable cash outflows
Scenario 1 Joe’s Business:
Joe received a hefty utilities bill in June and his electricity usage amounted to fifty dollars. Fortunately, this bill is
only due on the Fourth of July.
1. Can he recognise an expense?
2. Which month will this expense be recorded?
3. What amount will he record?
Scenario 2 Mary’s Business:
In Mary’s case, she needed to fill her delivery van with thirty dollars of gas for the month of March to fulfil her
deliveries. Fortunately, she has an account with the gas station and has 30 days to settle the bill after receiving the
statement being April.
2. Which month will this expense be recorded?
3. What amount will she record?
Exercise 2:
Scenario 1 Joe’s Business:
1. It meets the definition of an expense as well as the recognition criteria. Having received the bill from the
municipality immediately creates the obligation for Joe having used the electricity in the month of June.
2. He would have received the statement on the last day of June so to comply with the matching principle he would
need to reflect this expense in the month of June.
3. The expense will be for $ 50 as per the statement.
Scenario 2 Mary’s Business:
1. She would need to recognise this expense as it meets the definition and recognition criteria.
2. She would need to record it in the month of March.
3. She would record the amount per the statement of $ 30.
Solutions:
Income statement: Gross and net profit
• The outcome of recording revenue and expenses correctly and appropriately is to be able to assess the bottom
line
o Revenue – Cost of Sales = Gross Profit
o Revenue – Cost of Sales – Operating Expenses = Net Profit
• The key difference is whether operating expenses are included
• Both figures are key indicators of profitability
• It can be losses if the business is incurring more expenses than it is able to generate revenue
NOTES
11
BOOKKEEPING
Scenario 1 Joe’s Business:
If we assume his revenue was the sale of 100 bottles at three dollars each and his only expense was the electricity
bill, did he make a net profit or a net loss for the month of June and how much?
Scenario 2 Mary’s Business:
She made 50 successful deliveries at ten dollars each. Therefore, earning her revenue of five hundred dollars. If we
assume her only expense was the gas, did she make a net profit or loss for the month of April and how much?
Scenario 1 Joe’s Business:
Scenario 2 Mary’s Business:
Revenue
Expenses
Balance sheet: Assets
Balance sheet: Liabilities
• The financial position or wealth of the business at a point in time
• The strict definition of an asset per IAS 16 is that it is a resource controlled by the business
• Ownership is not a deciding factor
• The business needs to reap the rewards of using the asset and bear the risks of damage or loss
Example: Delivery van, building, cash, laptop
• IAS 37 defines a liability as a present obligation that results in the outflow of economic benefits
12
BOOKKEEPING
• There is money due to a stakeholder that must be settled.
Example: Loans, suppliers, taxation payable to the Revenue Service
Balance sheet: Equity
• Equity takes on a different definition to different types of businesses
• It is another means of financing the activities of an organisation without the pressure of having the debt and
interest
• In the case of a sole proprietor when the owner invests their money to get the business up it is known as owner’s
equity
• For large corporations with publicly traded stock, this would be reflected as shareholder’s equity
NOTES
13
BOOKKEEPING
T-accounts
What is an account?
• The first time a transaction hits the accounting records, it is recorded in a ledger by means of a general journal
• General journals impact on an account
• Each account has a debit and a credit side
• A list of accounts is known as a chart of accounts
• There is to the number of accounts that can be added to a chart of accounts
• Accounts can be deleted if no longer needed
• Each business will have a unique own chart of accounts depending on the size of the business and volume of
transactions
• Accounts help in applying the double-entry system
• Balances in an account can increase or decrease on the debit side and they can increase or decrease on the
credit side
• One transaction cannot increase on both the debit and the credit side at the same time in the same account
• Accounts are a system of organising transactions or grouping them to make the record-keeping process more
manageable
• A visual way of representing this is by means of a T-account
• T-accounts are not suitable for maintaining all transactions for a financial period
Cheat sheets:
Expenses Revenue
Tip
Always work from the known to the unknown. Every transaction will impact the debit side of one account and the
credit side of another. In the example of a sale, revenue always increases on the credit side. Create the credit entry
first and then attempt to work out which account will be debited. This is known as the contra entry. This will be
influenced by whether the cash is received immediately or later.
14
BOOKKEEPING
Available at: https://www.patriotsoftware.com/blog/accounting/when-is-cash-basis-accounting-
Available at: https://www.iasplus.com/en/standards/ias/ias18
Available at: https://smallbusiness.chron.com/advantages-accrual-accounting-4899.html
Available at: https://www.investopedia.com/terms/r/revenuerecognition.asp
References
Additional resources Link to the list of IFRS and IAS standards: https://www.ifrs.org/issued-standards/list-of-standards/
NOTES
References
3
BOOKKEEPING
Introduction Positive human interaction is underpinned by sound principles. It provides a compass for what is right and what is wrong. It guides us to have the best experience, make better decisions and put our best foot forward, every day. When in doubt, we always have our principles to fall back on. And like in everyday life, accounting principles guide accountants to make the best decisions to produce the most accurate financial results for a business.
By the end of the lesson, you will: • Be well versed in the fundamental principles of
bookkeeping and be able to apply them in your business or even when assessing your personal finances
• Be able to use the key principles of accounting to record revenue and expenses and when to record it
• Apply the definitions of the income statement and balance sheet elements to be able to calculate net profit and identify assets, liabilities and equity
Lesson outcomes
All the skills acquired in this lesson and the previous lessons will enable you to account for and reflect basic revenue and expenditure transactions using T-accounts.
Practical learning outcome
Key priciples
These principles are taken into consideration with each transaction. There are several basic accounting principles, concepts and assumptions which underpin the day-to-day activities from recording to the preparation of the annual financial statements. This lesson focuses on three of these principles.
The history of accounting
International Accounting Standards (IAS)
Key principle 1: Accrual vs cash basis of accounting
• IFRS is an accounting framework that can be thought of a novel • A novel is made up of chapters and paragraphs • Each chapter covers a single concept with guiding principles and is called an accounting standard • The title of each chapter is International Accounting Standards (IAS), followed by a number for ease of reference • Examples:
o IAS 1 - Presentation of financial statements o IAS 2 – Inventories o IAS18 – Revenue o IFRS 10 – Consolidated financial statements
• Each standard provides guidance on how to account for transactions before a record can even hit the books • An assessment must be done on whether the definition has been met • The standards provide a definition of the elements • Once the definition is met one needs to consider the recognition, measurement, presentation, and disclosure
principles • These principles are linked to the when and how to record a transaction • They form the basis of being able to treat transactions from an accounting perspective in the correct manner • The standards ensure consistency with accounting treatments and minimise grey areas
• This guides us around the timing of when to record a transaction
• The cash basis of accounting allows the monitoring of cash available at any point in time
• As soon as cash is spent it is recorded
• As soon as cash is received it is recorded
• The accrual method looks at when income is earned and when the expenses are incurred, irrespective of money
flowing
• This is the determining factor of when a transaction hits the accounting records
• aka The invoice basis of recording transactions
• It is more acceptable to revenue services such as the IRS in the States to use the accrual basis.
• Though the IRS does permit the use of the cash basis of accounting, barring your business meets certain criteria.
• The cash basis is allowed for smaller businesses, especially sole proprietors and small partnerships
5
BOOKKEEPING
• It is a far easier method for recording transactions and tracking cash movements
• To be fully compliant with IFRS, the accrual basis of accounting must be adopted
• Where there are reporting and regulatory requirements, goods and services are provided on credit or inventory
is carried, the accrual basis must be adopted
• If an audit opinion is required on the annual financial statements, the accrual basis must be used
• Consider the users and uses of the financial statements, and whether local tax implications need to be
considered before selecting an accounting basis
• The accrual basis is more transparent and more stable as it allows the recognition of revenue, irrespective of
whether the cash was received or not
• It provides a more accurate sense of the financial performance of a business
• It enables the assessment of the profitability of a business
• It is easier to identify and monitor trends to better understand cost drivers
Example: The college student from Lesson 1 had a substantial student loan to repay. These loans require monthly
settlements in cash. Whether the student makes the payment or not, he would need to reflect this amount in his
monthly budget or personal income statement as an expense as the obligation still exists.
Key principle 2: Revenue recognition
• When we can recognise revenue
• This principle lends itself to the accrual basis of accounting
• It helps identify when to recognise revenue and whether it should be recognised at all, as well as how much to
record
• The key element of the definition of revenue is that it must have been earned, meaning that you would need to
have given your customer a product or provided your client with the service
Example: With a gardening service, the gardener will tend to the lawn and flowerbeds and at the end of the day, he
would have earned his revenue, having provided the necessary services.
• The second important element is that the revenue must be realised or realisable
Example: If the gardener is paid in cash at the end of the workday, that revenue is realised. If he gives provides
an invoice and allows payments to be delayed to the following week or month the revenue is realisable, as it will
eventually become cash.
Key principle 3: Matching principle
• When we need to recognise specific expenses linked to the revenue recorded
• This principle is another feature of the accrual basis and linked to the revenue recognition principle
• It states that expenses must be matched to the revenue in a financial period
• The underlying question when capturing each expense is “Did this expense contribute to giving rise to the
revenue recorded?” and if yes, the expense can and should be recognised
NOTES
7
BOOKKEEPING
Income statement: Income
• It is a report that reflects the income or revenue earned by the business
• If IFRS is adopted, income will not equal cash receipts as it comprises amounts generated from making sales and
rendering services
• This income will be recorded whether you have received the cash or not
• A key consideration for an amount to be recognised as revenue is that it needs to have been earned during
normal business operations
• aka the top line as it is generally the first value you will see in every income statement
• The definition of revenue per IAS18:7
“the gross inflow of economic benefits such as cash receivables or other assets arising from the ordinary
operating activities of an entity such as sales of goods, sales of services, interest, royalties and dividends.”
• Once an item meets the revenue definition the next step is to satisfy the recognition criteria before recording the
entry
• The flow of associated future economic benefits to the organisation is probable and
• The amount of the sale is reliably measurable
• For this course, economic benefits will be the eventual receipt of the cash into the bank account
• IAS18 provides further guidance for recognising the different types of revenue that will be covered later in this
course
Example: As the gardening services has been performed the client is obligated to pay him for the day and the
amount owed is based on the invoice. From the gardener’s perspective, the flow of cash to him is probable and can
be reliably measured.
Example: In the gardening service, if a profit is made from selling the lawnmower, this will not be classified as
revenue as the core income-generating activity is not to buy and sell lawnmowers.
8
BOOKKEEPING
Scenario 1 Joe’s Business:
He sells homemade bottled lemonade and started his business in May. In June, he had already sold 100 bottles and
he has determined a selling price of three dollars per bottle. He has also been kind enough to allow his customers
extended payment terms so they will only be paying him on the 15th of August.
1. Can he recognise revenue?
2. In which month will he recognise revenue?
3. How much revenue can he recognise?
Joe has adopted IFRS and therefore uses the accrual basis of accounting.
Scenario 2 Mary’s Business:
She started an online business offering a delivery service, delivering flowers. She started her business in February
and managed to deliver 50 bunches of flowers in March. At ten dollars per delivery, she also offers her clients
extended payments and they will be making payment to her on the 1st of April.
1. Can she recognise revenue?
2. In which month will she recognise revenue?
3. How much revenue can she recognise?
Mary has adopted IFRS and therefore uses the accrual basis of accounting.
Scenario 1 Joe’s Business:
1. Yes. Joe is in the business of selling lemonade and he will be earning money from this as he has already sold 100
bottles at his selling price of three dollars per bottle, making the amount due to him probable and measurable.
2. As Joe is using the accrual basis of accounting and the revenue definition and recognition criteria were met in
June, he will they need to record his sale of hundred bottles in June.
3. Joe will be able to recognise $ 300 worth of revenue.
Scenario 2 Mary’s Business:
1. She can recognise revenue as even though the transactions are taking place online. She is in the business of
delivering flowers and once the deliveries have been fulfilled, the money becomes due to her. It is probable as
they will pay her in April and as her selling price is ten dollars per delivery we can reliably measure her revenue.
2. Her revenue was earned in March.
3. As this is when the definition and recognition criteria were satisfied, she can reliably record revenue of $ 500 in
her income statement in March.
Exercise 1:
Income statement: Expenses
• With the accrual basis, expenditure will not equal the cash payments being made as expenses need to be
recognised when incurred to make a sale or render a service
• The expense must have been incurred in the normal course of operating
• These are called operating expenses
Example: If you need to rent an office space to do the work, rental would be an operating cost. Non-operating costs
such as interest expense will be incurred but are not necessarily linked to the main source of income
• Expenditure also has recognition criteria that need to be satisfied before it can be formally recorded in the
accounting records
• The criteria are the same, except in the case of the future economic benefits, which will be in the form of
probable cash outflows
Scenario 1 Joe’s Business:
Joe received a hefty utilities bill in June and his electricity usage amounted to fifty dollars. Fortunately, this bill is
only due on the Fourth of July.
1. Can he recognise an expense?
2. Which month will this expense be recorded?
3. What amount will he record?
Scenario 2 Mary’s Business:
In Mary’s case, she needed to fill her delivery van with thirty dollars of gas for the month of March to fulfil her
deliveries. Fortunately, she has an account with the gas station and has 30 days to settle the bill after receiving the
statement being April.
2. Which month will this expense be recorded?
3. What amount will she record?
Exercise 2:
Scenario 1 Joe’s Business:
1. It meets the definition of an expense as well as the recognition criteria. Having received the bill from the
municipality immediately creates the obligation for Joe having used the electricity in the month of June.
2. He would have received the statement on the last day of June so to comply with the matching principle he would
need to reflect this expense in the month of June.
3. The expense will be for $ 50 as per the statement.
Scenario 2 Mary’s Business:
1. She would need to recognise this expense as it meets the definition and recognition criteria.
2. She would need to record it in the month of March.
3. She would record the amount per the statement of $ 30.
Solutions:
Income statement: Gross and net profit
• The outcome of recording revenue and expenses correctly and appropriately is to be able to assess the bottom
line
o Revenue – Cost of Sales = Gross Profit
o Revenue – Cost of Sales – Operating Expenses = Net Profit
• The key difference is whether operating expenses are included
• Both figures are key indicators of profitability
• It can be losses if the business is incurring more expenses than it is able to generate revenue
NOTES
11
BOOKKEEPING
Scenario 1 Joe’s Business:
If we assume his revenue was the sale of 100 bottles at three dollars each and his only expense was the electricity
bill, did he make a net profit or a net loss for the month of June and how much?
Scenario 2 Mary’s Business:
She made 50 successful deliveries at ten dollars each. Therefore, earning her revenue of five hundred dollars. If we
assume her only expense was the gas, did she make a net profit or loss for the month of April and how much?
Scenario 1 Joe’s Business:
Scenario 2 Mary’s Business:
Revenue
Expenses
Balance sheet: Assets
Balance sheet: Liabilities
• The financial position or wealth of the business at a point in time
• The strict definition of an asset per IAS 16 is that it is a resource controlled by the business
• Ownership is not a deciding factor
• The business needs to reap the rewards of using the asset and bear the risks of damage or loss
Example: Delivery van, building, cash, laptop
• IAS 37 defines a liability as a present obligation that results in the outflow of economic benefits
12
BOOKKEEPING
• There is money due to a stakeholder that must be settled.
Example: Loans, suppliers, taxation payable to the Revenue Service
Balance sheet: Equity
• Equity takes on a different definition to different types of businesses
• It is another means of financing the activities of an organisation without the pressure of having the debt and
interest
• In the case of a sole proprietor when the owner invests their money to get the business up it is known as owner’s
equity
• For large corporations with publicly traded stock, this would be reflected as shareholder’s equity
NOTES
13
BOOKKEEPING
T-accounts
What is an account?
• The first time a transaction hits the accounting records, it is recorded in a ledger by means of a general journal
• General journals impact on an account
• Each account has a debit and a credit side
• A list of accounts is known as a chart of accounts
• There is to the number of accounts that can be added to a chart of accounts
• Accounts can be deleted if no longer needed
• Each business will have a unique own chart of accounts depending on the size of the business and volume of
transactions
• Accounts help in applying the double-entry system
• Balances in an account can increase or decrease on the debit side and they can increase or decrease on the
credit side
• One transaction cannot increase on both the debit and the credit side at the same time in the same account
• Accounts are a system of organising transactions or grouping them to make the record-keeping process more
manageable
• A visual way of representing this is by means of a T-account
• T-accounts are not suitable for maintaining all transactions for a financial period
Cheat sheets:
Expenses Revenue
Tip
Always work from the known to the unknown. Every transaction will impact the debit side of one account and the
credit side of another. In the example of a sale, revenue always increases on the credit side. Create the credit entry
first and then attempt to work out which account will be debited. This is known as the contra entry. This will be
influenced by whether the cash is received immediately or later.
14
BOOKKEEPING
Available at: https://www.patriotsoftware.com/blog/accounting/when-is-cash-basis-accounting-
Available at: https://www.iasplus.com/en/standards/ias/ias18
Available at: https://smallbusiness.chron.com/advantages-accrual-accounting-4899.html
Available at: https://www.investopedia.com/terms/r/revenuerecognition.asp
References
Additional resources Link to the list of IFRS and IAS standards: https://www.ifrs.org/issued-standards/list-of-standards/
NOTES