Accrual basis is an accounting method where revenue and expenses are recorded when they are incurred, not when cash is received or paid.

• Revenue → recorded when a company delivers goods or services 

• Expenses → recorded when they relate to operations, even if they are not paid immediately

Government accounting is based on the accrual basis.

Cash basis is an accounting method where revenue and expenses are recorded when cash is actually received or paid.

• Revenue → recorded when payment is received 

• Expenses → recorded when payment is made

The Treasury is not on a cash basis.

A group (or consolidated entity) is an accounting term that refers to a parent company and its subsidiaries that are combined and presented as a single economic entity.

A group exists when:

• One entity (parent company / the Treasury) has control over one or more other entities (subsidiaries / budget units / institutions / state-owned enterprises)

• Their financial statements are combined (consolidated financial statements)

They are therefore viewed as a single entity, even though they are legally separate organizations.