From ACT Wiki
Financial reporting - accruals concept.
Accruals accounting means accounting by applying the accruals concept of including revenues, profits and the associated costs incurred while earning them in the same accounting period's profit or loss account or income statement.
For example, the total cost of an asset with a long useful life is spread for accounting purposes over the whole of its useful life.
Contrasted with the cash basis of accounting, which takes account only of receipts and payments in the accounting period.