Setup: How does the setup choice of "Tax Basis" inflict on reports and accounting?

Setup: How does the setup choice of "Tax Basis" inflict on reports and accounting?

Could someone give more details how the choice Tax Basis (under Organization settings) result in different results in:
- Reports, how and which ones
- Accounting postings. 

The choice is between Accrual or Cash.  In our case we have VAT based on payment - but very interested in details related to reports related to this.  Can not find any details regarding this in the manuals.

Thank you,