Definition of "method of accounting" [method of accounting]

• A bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts (noun)

WordNet. Princeton University. 2010.

• "For the outside investor, and also for the financial analyst, the problem is that the so-called income-forecast method of accounting used by the industry and now codified in Financial Accounting Standards Board (FASB) Statement of Position (SOP) 00-2 relies to a great extent on a management’s estimates (possibly far into the future) of how much cash income a film or television series might generate."