Under the modified accrual basis of accounting for a governmental unit, revenues should be recognized in the accounting period in which they are

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The modified accrual basis of accounting requires that revenues be recognized in the accounting period in which they are earned or levied, measurable, and available. This means that the revenue is either earned through providing goods or services or levied through the imposition of taxes or other charges. In addition, the revenue must be measurable and capable of being reasonably estimated, and it must be available for use in the current period or within 60 days after the end of the current period. Collection of the revenue is not sufficient to recognize it under the modified accrual basis. Budgeting is also not a sufficient criteria for recognizing revenues under this basis of accounting.

Under the Modified Accrual Basis of Accounting for a Governmental