Social Responsibility Accounting It is concerned with presentation of accounting information by business entities and other organisations from the view point of the society by showing the social costs incurred such as environmental pollution by the enterprise and social benefits such as infrastructure development and employment opportunities created by them. It arises because of corporate social responsibility. (v) Human Resources Accounting It is concerned with identification, quantification and reporting of investments made in human resources of an enterprise. Student activity Think: Do you think financial accounting, cost accounting and management accounting can be maintained by the same person?
Financial Accounting Accounting Cost Accounting Management Accounting Social Responsibility Accounting Human Resources Accounting Accountancy - . Bases of Accounting There are three bases of accounting in common usage, namely (i) Cash basis (ii) Accrual or mercantile basis (iii) Mixed or hybrid basis. (i) Cash basis Under cash basis of accounting, actual cash receipts and actual cash payments are recorded. In this basis, revenue is recognised when cash is received and expenses are recognised when cash is paid.
Credit transactions are not recorded till cash is actually received or paid. Under this basis, (a) Any income received (b) Any expenditure paid (c) Any asset purchased for which cash is paid (d) Any liability paid during the accounting period whether related to the past, present or future is taken into account. (ii) Accrual or mercantile basis Under accrual basis of accounting, the revenue whether received or not, but has been earned or accrued during the accounting period and expenses incurred whether paid or not are recorded. In other words, revenue is recognised when it is earned or accrued and expenses are recognised when these are incurred.
Under this basis, (a) Any income earned whether received or not (b) Any expenditure incurred whether paid or not (c) Any asset purchased whether cash is paid or not (d) Any liability incurred whether paid or not during the accounting period is recorded. Under section ( ) of the Indian Companies Act, , all the companies are required to maintain the books of