Accrued income: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Layout.) |
imported>Doug Williamson (Add link.) |
||
| (3 intermediate revisions by the same user not shown) | |||
| Line 6: | Line 6: | ||
It is an asset. | It is an asset. | ||
(The related accounting entries being: DEBIT Accrued income in the balance sheet; and CREDIT Revenue in the income statement.) | (The related accounting entries being: DEBIT Accrued income asset in the balance sheet; and CREDIT Revenue in the income statement.) | ||
| Line 13: | Line 13: | ||
Namely the future cash receipt from the customer. | Namely the future cash receipt from the customer. | ||
There is no liability associated with this asset, because we have already undertaken the relevant revenue-earning work. | |||
For this reason, the revenue is recognised already, in the income statement. | |||
| Line 25: | Line 30: | ||
* [[Deferred income]] | * [[Deferred income]] | ||
* [[Financial reporting]] | * [[Financial reporting]] | ||
* [[Income statement]] | |||
* [[Realisation]] | |||
* [[Reporting entity]] | * [[Reporting entity]] | ||
* [[Revenue]] | * [[Revenue]] | ||
Latest revision as of 11:08, 11 January 2023
Financial reporting - balance sheet - assets - accruals accounting.
Accrued income is revenue earned by a business but not yet invoiced or received from the customer.
It is an asset.
(The related accounting entries being: DEBIT Accrued income asset in the balance sheet; and CREDIT Revenue in the income statement.)
Future economic benefits are expected to flow from the asset to the reporting entity.
Namely the future cash receipt from the customer.
There is no liability associated with this asset, because we have already undertaken the relevant revenue-earning work.
For this reason, the revenue is recognised already, in the income statement.
