Modified basis of accounting can be classified as follow:
Modified Cash basis of Accounting
Modified Accrual basis of Accounting
Modified Cash basis of Accounting
Modified cash basis of accounting recognizes transactions and events which have occurred by year end and are normally expected to result in a cash receipts and disbursements within a specific period after year end.
Modified Accrual basis of Accounting
Under modified accrual basis of accounting revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred. Most government accounting follows this method.
The basis of accounting adapted to government fund accounting where revenues are recognized when received in cash or when resources are considered available. Expenditures are recognized when the related fund liability is incurred.
