In modern days, the scope of accounting is not confined only to the ascertainment of profits or losses of a business during a particular accounting period. Rather, its scope has widened to other areas as well such as providing useful information to the management which helps them in decision making and drafting their future plans. So, in order to fulfill the various requirements of management, accounting can be classified into different branches. Let’s talk about Tax Accounting.
This branch of accounting is a technique of accounting that is used for tax purposes. Tax accounting helps in handling the tax problems with a business-like computation of tax liabilities, filing tax returns, etc.
Accounting, in simple terms, is the recording of various transactions, that took place during a particular period, in the books of accounts in a systematic and proper manner.
After going through this lesson, you will get a detailed concept of the following Basis of Accounting. Cash and Accrual Basis of Accounting,
Importance of IFRS – IFRS helps the economies of the world to establish global harmony, uniformity, and comparability in the process of preparation of their financial statements.