Modified Accrual Accounting
Categories: Accounting, Tax
See: Accrual Accounting.
When you accrue costs, you recognize them over time. When you modify an accrual accounting system, you just change the way in which you reocgnize those costs.
Like...if a bonus is paid artihmetically, quarterly, to sales people, you might accrue for those costs monthly...but maybe things get modified because the environment changes. And you then end up tracking everything annually. That works, too.