Mixing accounting methods in financial statement preparation

Discussion in 'General Accountancy Discussion' started by Mari2003, Jun 14, 2018.

  1. Mari2003

    Mari2003

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    Hi
    I recently joined a provincial government agency in Edmonton Alberta, and I have been told the following:

    "monthly financial statements are prepared on a cash-basis, but be mindful that the year-end financial statements are prepared on an accrual-basis". Is this possible?
     
    Mari2003, Jun 14, 2018
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  2. Mari2003

    Steve-LevelUp VIP Member

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    I know that government reporting doesn't necessarily follow standard GAAP rules. Although I've never worked in government, I have heard that cash accounting is something that is done. EG, spending $100M to build a bridge is fully expensed and not capitalized...Governments have little accountability to its members (citizens)
     
    Steve-LevelUp, Jun 15, 2018
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  3. Mari2003

    Fidget VIP Member

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    Sounds odd. It's usually one or the other. Government here (UK) used to do cash accounting, but went over to 'resource' accounting - aka accrual accounting, some years ago now. Having worked in both government and private sectors, I've never known there to be a mix of the two going on at the same time.
     
    Fidget, Jun 17, 2018 at 4:23 PM
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