03-02-2009, 06:31 PM
Dear,
All the listed entities have to issue quarterly accounts. In such scenario it is imperative to follow the accrual method uniformly all over the year.
In other cases, the managment feels it appropriate to prepare the monthly accounts (for decision making purposes) strictly on the accrual basis, so that the results must not distort by charging such expenses on payment basis.
Please keep in mind that when IFRSs stipulate to follow accrual method, it is not specific for annual balance sheet, rather, it is required to be followed uniformly for all the financial statements reported to the stakeholders. Being a best practice and supposedly giving uniform undistorted results, it must also be followed for all monthly accounts as well.
Regards,
KAMRAN.
All the listed entities have to issue quarterly accounts. In such scenario it is imperative to follow the accrual method uniformly all over the year.
In other cases, the managment feels it appropriate to prepare the monthly accounts (for decision making purposes) strictly on the accrual basis, so that the results must not distort by charging such expenses on payment basis.
Please keep in mind that when IFRSs stipulate to follow accrual method, it is not specific for annual balance sheet, rather, it is required to be followed uniformly for all the financial statements reported to the stakeholders. Being a best practice and supposedly giving uniform undistorted results, it must also be followed for all monthly accounts as well.
Regards,
KAMRAN.
