Accrual

1. Accounting. An amount owing - but not yet invoiced - for services or goods received 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.

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
• Deferred income
• Defined benefit pension scheme
• Prepayments
• Provision
• CertICM