Accrual

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Revision as of 12:58, 4 August 2019 by imported>Doug Williamson (Add link.)
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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