Financial Processing Standards for Labor Unions Article 4

The accounting basis of a labor union shall be on the accrual basis, for those applying cash basis during the year, it shall be adjusted to the accrual basis at year end when closing account.The accrual basis referred to in the preceding paragraph denotes that a revenue shall be recognized as such when a labor union becomes eligible to collect it and that an expense shall also be recognized as such when a labor union becomes liable to pay it. At the time of closing, revenues and expenses shall be adjusted to the fiscal year they belong through adjusting entries.The cash basis referred to in Paragraph 1 to the Article denotes that a revenue shall be recognized as such when cash is received and that an expense shall be recognized as such when it is paid out.