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Modified Accrual Accounting

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Accrual Accounting
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chisha ntungo
Accountant, Zambia

Modified Accrual Accounting

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-for-profit non-governmental organisations.
 

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BHASKAR
Accountant, India
 

Modified Accrual Accounting in India

Modified accrual accounting is prevalent is India but is not given recognition by state or accountin... Sign up

 
1
Pratt
Strategy Consultant, Sierra Leone
 

Modified Accrual Accounting & International Accounting Standards (IAS)

I think an accountant in any organization, whether it is a government agency, for profit or not-for-... Sign up

 

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Discussion Topics
topic Accrual Basis Accounting versus Cash Basis Accounting
topic The Bank Reconciliation Statement
topic The Matching Principle
topic Compound Journal Entries. Definition and Types
👀Modified Accrual Accounting
🔥 The (Stable) Monetary Unit Assumption
topic The Economic Entity Principle in Accounting
topic The Principle of Going Concern
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More on Accrual Accounting:
Summary
Discussion Topics
topic Accrual Basis Accounting versus Cash Basis Accounting
topic The Bank Reconciliation Statement
topic The Matching Principle
topic Compound Journal Entries. Definition and Types
👀Modified Accrual Accounting
🔥 The (Stable) Monetary Unit Assumption
topic The Economic Entity Principle in Accounting
topic The Principle of Going Concern
Special Interest Group

SIG Leader

Do you know a lot about Accrual Accounting? Become our SIG Leader

Knowledge Center

Accrual Accounting
Knowledge Center



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