Nevada Revised Statutes Title 31. Public Financial Administration § 353.3241. Modified accrual or accrual basis of accounting to be used

1. The modified accrual or accrual basis of accounting, as appropriate, must be utilized in measuring financial position and operating results.

2. Revenues and expenditures concerning governmental funds must be recognized on the modified accrual basis. Revenues must be recognized in the accounting period in which they become available and measurable. Expenditures must be recognized in the accounting period in which the liability of the fund is incurred, if measurable, except for unmatured interest on general long-term debt and on indebtedness secured by interest-bearing levies for special assessments, which must be recognized when due.

3. Revenues and expenses concerning proprietary funds must be recognized on the accrual basis. Revenues must be recognized in the accounting period in which they are earned and become measurable. Expenses must be recognized in the period incurred, if measurable.

4. Revenues and expenses or expenditures, as appropriate, concerning fiduciary funds must be recognized on the basis consistent with the objective for accounting measurement. Nonexpendable trust funds and funds held in trust for pensions must be accounted for on the accrual basis. Expendable trust funds must be accounted for on the modified accrual basis. Assets and liabilities of agency funds must be accounted for on the modified accrual basis.

5. Transfers must be recognized in the accounting period in which the relevant interfund receivables and payables arise.