J Narayanan (Finance Professional ) (24 Points)
03 December 2011I am seeking information on the basis of accounting being followed by apartment associations. Is it a general practice to maintain such accounts on cash basis? Is it permitted?
CHANDRAKALA JAIN
(Partner)
(21 Points)
Replied 03 December 2011
| Originally posted by : J Narayanan | ||
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I am seeking information on the basis of accounting being followed by apartment associations. Is it a general practice to maintain such accounts on cash basis? Is it permitted? |
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It is always advisable to follow accrual basis of accounting, sometime one need to charge interest and also may need to present the financial statement to users, which should be meaningful, it is very important to recognise liability and receivable
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