Accrual basis of accounting is the only acceptable method for external reporting of financial statements under both ASPE and IFRS.

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Accrual basis of accounting is recognized as the standard method for preparation and presentation of financial statements under both ASPE (Accounting Standards for Private Enterprises) and IFRS (International Financial Reporting Standards). This approach reports transactions and events when they occur, irrespective of the actual cash flow. Thus, the accrual basis of accounting provides a more accurate representation of a company's financial performance and position.

Accrual Basis of Accounting Is the Only Acceptable Method for External