In short
Under the modified accrual basis, governmental funds recognize revenue when it is measurable and available: collectible within the period or soon enough after it to pay the period's liabilities.
Key takeaways
- For property taxes, available means collected within 60 days after year-end.
- Amounts measurable but not available are reported as deferred inflows of resources.
- Many governments use a similar period for other revenues and disclose it.
Where it's tested
BAR: Governmental Fund Accounting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
Under modified accrual accounting, property taxes are generally considered 'available' (and recognized as revenue) if collected during the year or within how long after year-end?