1. Assets - liabilities - time.
In the context of the passage of time, to accrue means to grow, as a result of time passing.
Examples include interest payable and receivable, and pension benefits.
- Interest - counting days - conventions
- "The day count convention determines how interest accrues over time in a variety of transactions...
- [In wholesale markets interest] is usually expressed to accrue at a rate per annum (the reference period).
- It is often due and payable at shorter intervals, usually a number of months (the interest period)."
- Day count conventions - the Treasurer's wiki.
- Closed pension schemes - do benefits continue to accrue?
- It depends.
- "Contributions by existing members may or may not continue and benefits may or may not continue to accrue in relation to future service."
- Closed pension scheme - the Treasurer's wiki.
2. Bookkeeping - accounting - accrued expenses - balance sheet liabilities - recognition.
In bookkeeping, to accrue an expense means to make an entry into accounting records, to recognise a liability to make a payment for the expense at a future date.
The amount of the accrued expense may need to be an estimate at this stage.
There may also be uncertainty about the exact timing of paying the liability.
3. Benefits flowing from actions.
To fall into the possession of someone - or to become an advantage available to someone - often following their taking a positive action.
- Benefits of outsourcing remittance processing
- "The benefits that can accrue to companies in outsourcing their remittance processing [include]:
- ... Internal controls can be improved; and
- Items normally reach the banking system faster than a company could achieve itself."
- Payments and payment systems - the Treasurer's wiki.
In relation to a claim or right, to become legally enforceable.
For example, a legal cause of action in negligence usually accrues from the date that the claimant suffers an injury.
- Accrual rate
- Accruals basis
- Accrued benefit obligation
- Accrued benefits
- Accrued expense
- Accrued income
- Accrued interest
- Balance sheet
- Closed pension scheme
- Day count conventions
- Defined benefit pension scheme
- Financial reporting
- Interest period
- Internal control
- Payments and payment systems
- Reference period