Accrual: Difference between revisions
imported>Doug Williamson (Add 2nd definition. Source: linked pages.) |
imported>Doug Williamson (Add link.) |
||
| (8 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
1. ''Financial reporting.'' | 1. ''Financial reporting - balance sheet - liabilities.'' | ||
An amount | An amount that we owe - but that has not yet been invoiced to us - for: | ||
*Services or goods received before the end of the accounting period; or | *Services or goods received before the end of the accounting period; or | ||
*Other economic benefits enjoyed before the end of the accounting period. | *Other economic benefits enjoyed before the end of the accounting period. | ||
| Line 9: | Line 9: | ||
Accruals may include estimates about the amounts of final future payments, or their likelihood, or both. | Accruals may include estimates about the amounts of final future payments, or their likelihood, or both. | ||
Also known as an ''accrued expense''. | |||
| Line 17: | Line 20: | ||
This is the usual basis for commercial organisations and medium sized and larger not-for-profit organisations. | This is the usual basis for commercial organisations and medium sized and larger not-for-profit organisations. | ||
Indeed it is mandatory in most | Indeed it is mandatory in most financial reporting systems, in order to give a ''true and fair view'' in the financial statements. | ||
| Line 27: | Line 30: | ||
== See also == | == See also == | ||
* [[Accrual rate]] | * [[Accrual rate]] | ||
* [[Accruals]] | |||
* [[Accruals accounting]] | |||
* [[Accruals basis]] | * [[Accruals basis]] | ||
* [[Accruals concept]] | |||
* [[Accrue]] | |||
* [[Accrued income]] | * [[Accrued income]] | ||
* [[Balance sheet]] | * [[Balance sheet]] | ||
* [[Bookkeeping]] | * [[Bookkeeping]] | ||
* [[Cash]] | |||
* [[Cash flow]] | |||
* [[Deferred income]] | * [[Deferred income]] | ||
* [[Defined benefit pension scheme]] | * [[Defined benefit pension scheme]] | ||
* [[Financial reporting]] | |||
* [[Financial statements]] | |||
* [[Income statement]] | * [[Income statement]] | ||
* [[Liabilities]] | * [[Liabilities]] | ||
* [[Not-for-profit]] | |||
* [[Prepayments]] | * [[Prepayments]] | ||
* [[Provision]] | * [[Provision]] | ||
* [[True and fair view]] | |||
[[Category:Accounting,_tax_and_regulation]] | [[Category:Accounting,_tax_and_regulation]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 14:10, 18 July 2022
1. Financial reporting - balance sheet - liabilities.
An amount that we owe - but that has not yet been invoiced to us - for:
- Services or goods received before the end of the accounting period; or
- Other economic benefits enjoyed before the end of the accounting period.
An accrual is a form of liability, because it represents cash that will have to be paid out in the future, for a benefit that has already been received.
Accruals may include estimates about the amounts of final future payments, or their likelihood, or both.
Also known as an accrued expense.
2. Financial reporting.
Any application of the accruals basis of financial reporting (also known as the matching basis).
This is the usual basis for commercial organisations and medium sized and larger not-for-profit organisations.
Indeed it is mandatory in most financial reporting systems, in order to give a true and fair view in the financial statements.
3. Pensions.
In a defined benefit pension scheme, the build up over time of entitlement to future benefits, resulting from additional years of pensionable service.
See also
- Accrual rate
- Accruals
- Accruals accounting
- Accruals basis
- Accruals concept
- Accrue
- Accrued income
- Balance sheet
- Bookkeeping
- Cash
- Cash flow
- Deferred income
- Defined benefit pension scheme
- Financial reporting
- Financial statements
- Income statement
- Liabilities
- Not-for-profit
- Prepayments
- Provision
- True and fair view
