Evaluating The Process Of Revenue RecognitionIn Tehran Municipality In Order To DetermineFair Basis Of Accounting & Revenue Reporting

In modified accrual basis, revenues are recognized when they are measurable and available in the same financial period or a short time after that (maximum 60 days). The current research is conducted aiming the consideration of the process of realizing and collecting revenues of Tehran Municipality in order to establish modified accrual accounting. The results show that although Tehran Municipality, revenue are enjoyed theoretically two criterias– measurable and available–but in practice,due to some limiting policies and procedures, it has some problems in applying modified accrual accounting. However, if some policies and procedures of recognizing and collecting revenues shall be changed, applying the modified accrual accounting for revenue recognition and reporting will be possible.