IEEE Region 3 Leadership Development Committee Section Treasurer Training

Principles of IEEE Financial Operation

1. The annual financial report is essentially structured to use cash basis accounting.
    
2. Cash Basis means only those transactions involving the receipt or disbursement of cash are reported.
    
3. The L-50 Report has separate columns for accrual of income and expense.
    
4. At the end of the fiscal year, determine what accruals the Section has.
   An income earned or committed but not yet received is accrued income.
   An expense incurred but not yet paid is accrued expense.
    
5. It is likely that most Sections will have few if any accruals to report.

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