The accrual and consolidation model is considerably different from the compliance and liquidity model. It requires that all cost be covered, that both annual and long term items be included, and that all subentities be aggregated. It is widely used in business financial reporting and accounting. Recognition or when to recognize an item is usually called the accounting basis. The cash basis versus accrual basis is the issue in government.
Measurement refers to what items to include or emphasize in the financial reports.
In government, the issue is whether to emphasize annual items or both annual and long term items. Sometimes the terms current and total resources are used instead of annual and long term. One other broad issue is also contained in the government debate. It is partitioning versus consolidation, with partitioning referring to reporting by subentities or subunits and consolidation referring to reporting on an aggregate basis. A fourth accounting issue in building models or conceptual frameworks is how to value the items.