Accruals concept

Financial reporting - accounting concepts.

The principle that:

• Revenues, profits and
• The associated costs incurred while earning them

should be included (recognised) in the same period's profit or loss account or income statement.

Also known as Matching.

See also

• Accounting
• Accounting concepts
• Accrual
• Accruals
• Accruals accounting
• Accruals basis
• Consistency
• Disaggregation
• Financial reporting
• Financial statements
• Going concern
• Income statement
• Matching
• Profit and Loss account
• Prudence
• Recognition
• True and fair view