Modified Accrual Accounting


 
Accrual Accounting > Forum

In the forum section you will find recent discussions within this knowledge area.


Modified Accrual Accounting
chisha ntungo, Accountant, Zambia, Member
What does modified accrual accounting mean? This is an accounting method commonly used by government agencies that combines accrual-based accounting with cash-basis accounting.
Modified accrual accounting recognises revenues when they become available and measurable and, with a few exceptions, recognises expenditures when liabilities are incurred.
This system divides available funds into separate entities within the organisation to ensure that the money is being spent where it was intended.
To distinguish government accounting from business accounting, it uses some different terminology than other accounting methods. For example, it uses the terms "excess" instead of "net income", and "expenditures" instead of "expenses".
The idea that government agencies need a different type of accounting system is accepted because the purpose of government organizations is significantly different from the purpose of both for-profit businesses as well as not-...Sign up
 

 
Modified Accrual Accounting in India
BHASKAR, Accountant, India, Member
Modified accrual accounting is prevalent is India but is not given recognition by state or accounting bodies....Sign up
 

 
Modified Accrual Accounting & International Accounting Standards (IAS)
Pratt, Strategy Consultant, Sierra Leone, Member
I think an accountant in any organization, whether it is a government agency, for profit or not-for-profit organization, must follow accounting standa...Sign up
 

   
Special Interest Group Leader

Interested? Sign up for free.


Accrual Accounting
Summary
Forum
Best Practices

    Expert Tips

    Resources

     



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.0 - Last updated: 18-4-2019. All names of their owners.