What is the Other Comprehensive Basis of Accounting?

An other comprehensive basis of accounting (OCBOA) is a non-GAAP accounting framework that is used to generate financial statements. Examples of OCBOA are the cash basis of accounting, the modified cash basis of accounting, and the income tax basis of accounting. The use of OCBOA may apply when financial statements are needed for a specific purpose, or when the preparer wants to use a simpler system than GAAP that requires fewer disclosures. It is frequently less expensive to use an OCBOA to prepare financial statements. A downside of using an OCBOA is that the resulting information tends to be skimpier or more summarized than would have been the case if GAAP had been used.