Accrual

1. Accounting.

An amount owing - but not yet invoiced - 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.

2. 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 basis
• Bookkeeping
• CertICM
• Deferred income
• Defined benefit pension scheme
• Liabilities
• Prepayments
• Provision