IN SB0402

Requires all Indiana state agencies, political subdivisions, and state educational institutions to maintain accounts on an accrual basis starting for budget years beginning after December 31, 2011

Mandates that financial statements include information showing resources, liabilities, and full costs of operations, including costs that do not generate or use resources in the current reporting period

Requires budgets to include supplemental accrual-based information showing full operational costs, effective for budget periods beginning after December 31, 2012

Costs attributed to each reporting period must include allowances for unfunded future health and pension benefits earned by employees during that period

Defines "accrual basis" as recognizing revenue when earned and expenses when incurred, regardless of when cash is received or paid, explicitly excluding modified accrual accounting