Regulations Governing the Financial Statements and Disposal of Funds of Cooperatives Article 7

A cooperative shall adopt the accrual basis of accounting. Any cooperative that adopts the cash basis of accounting on a usual basis shall make adjustments according to the accrual basis when settling final accounts.Under the accrual basis of accounting, as set forth in the preceding paragraph, revenues are recorded when they are confirmed to be receivable, and expenses are recorded when they are confirmed to be payable. Moreover, in final accounts, the entries of revenues and expenses are adjusted according to the years when they are incurred. Under the cash basis of accounting, revenues are recorded only when cash is received, and expenses are recorded only when cash is paid.