Cash basis

1. Financial reporting - cash accounting.

In financial reporting, the very simple recognition of income and expenditure on the basis of the related receipts and payments only.

Contrasted with the much more widespread accruals basis.

2.

Any basis of measurement, evaluation or treatment based on cash receipts and cash payments.

For example, tax liabilities or tax relief.

See also

• Accrual
• Accruals accounting
• Accruals basis
• Cash accounting
• Financial reporting
• Financial statements
• Realisation
• Tax relief
• True and fair view