Other Comprehensive Basis of Accounting (OCBOA) in United States accounting refers to a system of accounting other than
GAAP
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. As explained in the ''Journal of Accountancy'',
under
Statement on Auditing Standards (United States)br>
No. 62, Special Reports an OCBOA is any one of:
*A statutory basis of accounting (for example, a basis of accounting that insurance companies use under the rules of a state insurance commission).
*Income-tax-basis financial statements.
*Cash-basis and modified-cash-basis financial statements.
*Financial statements prepared using definitive criteria having substantial support in accounting literature that the preparer applies to all material items appearing in the statements (such as the price level basis of accounting).
In situations where GAAP-basis statements aren't necessary because of loan covenants, regulatory requirements or similar circumstances, an OCBOA may just be the answer.
See also
*
Comparison of cash method and accrual method of accounting
In accounting, a basis of accounting is a method used to define, recognise, and report financial transactions. The two primary bases of accounting are the cash basis of accounting, or cash accounting, method and the accrual accounting method. A ...
References
Accounting in the United States
Accounting systems
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