According to which organizations is the accrual basis of accounting specifically required for financial reporting?

The accrual basis of accounting is a fundamental principle in financial reporting that reflects a company’s financial position and performance by recording revenues and expenses when they are earned or incurred, regardless of when cash transactions occur.

The Centers for Medicare and Medicaid Services (CMS) require the use of the accrual basis of accounting in their financial reporting, particularly for entities that receive federal funding and need to provide detailed financial statements to demonstrate compliance and fiscal responsibility. This requirement ensures transparency and accountability in how health care organizations report their financial health, which is crucial for regulatory oversight and for stakeholders relying on accurate financial data.

The other organizations mentioned have different roles or requirements that may not specifically mandate accrual-based accounting for financial reporting in the same contexts as CMS. FASB and GASB set standards for financial accounting and reporting but do so in more specific domains—FASB for private sector entities and GASB for governmental entities. The AICPA develops professional standards and guidelines but does not enforce a specific accounting method as a requirement for financial reporting in the same way CMS does for certain health care providers and organizations.