Archive for August, 2009

The modified accrual basis of accounting works basically the same way as the accrual basis, but for revenues that have not been received by the fiscal year-end, only those amounts that are “available” to meet the current obligations of the government would be recorded as revenues. (Chapter 2 describes the concept of availability as it relates to the modified accrual basis of accounting.) Amounts that are receivable that are not considered available would be recorded as deferred revenue and not be recorded as revenue. (more…)