Accruals accounting

Financial reporting.

Accruals accounting means accounting by applying the accruals concept of including revenues, profits and the associated costs incurred while earning them the same accounting period's profit or loss account or income statement.

Contrasted with the cash basis of accounting, which takes account only of receipts and payments in the accounting period.

See also

• Accounting
• Accounting concepts
• Accrual
• Accruals concept
• Consistency
• Disaggregation
• Going concern
• Income statement
• Profit and Loss account
• Prudence