Accrual: Difference between revisions
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''Accounting.'' | ''Accounting.'' | ||
An amount owing - but not yet invoiced - for | 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. | 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. | |||
Revision as of 11:23, 26 October 2016
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.
