Under the modified accrual basis of accounting, derived nonexchange revenues are recognized by a governmental entity as revenue

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Under the modified accrual basis of accounting, derived nonexchange revenues (such as taxes and grants) are recognized when the underlying event occurs (such as the passage of a tax law or receipt of a grant award) and the revenue is both measurable and available. "Available" means that the revenue is both collected within the current period or will be collected within the next 60 days and is not subject to a significant future reversal of revenue.

Under the Modified Accrual Basis of Accounting, Derived Nonexchange Revenues