The accounting of the joint venture company shall adopt the internationally used accrual basis and debit and credit accounting system in their work.
The second ASpect of the meASurement process is often referred to AS matching cost and revenue and its fundamental to the accrual bASis of accounting.
To implement the matching concept correctly, the accrual basis of accounting is generally used FOR merchandising enter prices.
There are TWO widely used bases of accounting: the accrual basis and the cash basis.
The generally accepted accounting principles (GAAP) require that a business use the accrual basis.
The income statement discloses revenues, expenses and net income on the accrual basis.