The accrual method is required for financial statements. Deferred tax accounting is generally not practiced. Revenue recognition requires objective measurement and reasonable certainty of realization. All expenses must be accrued in the same period in which revenues are recorded. Fixed assets must be depreciated on a systematic basis according to their useful lives.
Amortization is also straight-line over a five year period.
Intangible assets are recognized only when a cost has actually been incurred to acquire them and a future benefit is expected. Inventories must be valued using the lower of cost or market using the LIFO method. Long-term contracts can be accounted for using the percentage completion or the completed contract method. Losses are recognized on all contracts as soon as known. Investments are carried at cost.