What is the disadvantage of modified accrual basis?

The modified accrual basis can lead to a mismatch between revenue recognition and cash flow, as it recognizes revenues when they are measurable and available, rather than when they are actually earned. This can create challenges in accurately assessing an entity's financial position, as it may not reflect the true economic activity or obligations. Additionally, it may complicate budgeting and financial planning, as future cash flows may not align with reported revenues.