Accruals vs modified accruals

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Modified Accrual
Full Accrual
Accounts Payable
In the absence of an applicable modification, accounts payable are recognized in the fiscal year in which the agency incurs the liability
Recognize a payable in the fiscal year in which the agency incurs the liability.
Prepaid Items
Under GAAP, it is optional to use either the purchases method or the consumption method. Recognize an asset when an item is purchased and an expense when the item is used or consumed
Recognize an asset when an item is purchased and an expense when an item is used or consumed.
Long-Term Liabilities – Current Portion
Recognize the liability as it matures or to the extent the liability is expected to be liquidated with expendable available financial resources.
Recognize the liability in the fiscal year in which the agency incurs the liability.
Long-Term Liabilities – Noncurrent
The portion that does not meet the criteria for recognition as a current liability is a noncurrent long-term liability.
Recognize the liability in the fiscal year in which the agency incurs the liability.
Revenues
Governmental funds recognize revenues as cash is received during or soon after the end of the year and when it is earned and both measurable and available
Recognize the revenue in the fiscal year in which the agency earns the revenue and it is measurable. Availability is not a factor.
Expenditures
n the absence of an applicable modification, expenditures are recognized in the fiscal year in which they are expended or when they are subject to accrual. Accruals are recorded when they are expected to use expendable financial resources.
Fund expenditures are recognized in the fiscal year in which the agency incurs a liability. Adjustments may be needed to ensure the matching principle is followed.
Capital Asset Acquisitions
Recognize the expenditure at the acquisition date.
Recognize the cost of the asset and