raamatupidamispõhised

Raamatupidamispõhised is the Estonian term used to describe accounting practices, systems, or reporting that are based on accrual accounting principles rather than on cash movements. In this sense, transactions are recorded when they occur and are recognized in the financial statements as soon as the economic event takes place, independent of when cash is received or paid. This basis is contrasted with kassapõhine raamatupidamine, or cash-based accounting, where income and expenses are recognized only when cash changes hands.

In raamatupidamispõhised accounting, a company records revenues when earned and expenses when incurred. It also recognizes receivables, payables, depreciation, accruals, and provisions, which provides a more complete view of the company’s financial position and performance over a period. This method aligns with many international accounting standards and with most national accounting frameworks used by mid-size and large entities.

Applications of raamatupidamispõhised accounting include financial reporting for external stakeholders, internal management accounting, and regulatory compliance. While larger organizations and entities following standards such as IFRS or national GAAP typically use accrual accounting, some jurisdictions or small entities may permit or require cash basis for tax reporting or certain simplified formats. The choice of basis affects reported profits, asset and liability levels, and cash flow interpretation.

Advantages of raamatupidamispõhised accounting include a more accurate measurement of economic performance and better matching of revenues with related expenses. Disadvantages involve greater complexity, the need for more advanced systems, and the estimation requirements for items like provisions and depreciations.