Accrual accounting in compliance with ASPE/IFRS results in these timing differences between when a benefit or obligation must be reported for financial accounting purposes and when the cash inflow or outflow actually occurs.

Question

Quizplus · Accepted Answer

Accrual accounting recognizes revenue and expenses when earned/incurred, regardless of when cash is received/paid. This can lead to timing differences between when an item is recognized for financial accounting purposes and when the corresponding cash inflow/outflow occurs.

Accrual Accounting in Compliance with ASPE/IFRS Results in These Timing