Business Entity Accounting Act Article 10

（Accounting Basis）The accounting basis shall follow the accrual basis of accounting. For businesses that adopt the cash basis of accounting in their daily operations, adjustments shall be made in accordance with the accrual basis during the year-end closing process.Accrual basis means that entries into the accounting books shall be made when revenues are determined as receivable and expenses determined as payable. During the year-end closing process, adjusting journal entries shall be made for revenues and expenses in accordance with the year to which they relate.Cash basis means that entries into accounts shall be made when revenues are received or expenses are paid in cash.