Accrual
/əˈkruːəl/
Definitions
- (n.) The recognition of revenue or expenses that have been incurred but not yet received or paid, according to the accrual basis of accounting.
Under the accrual method, expenses are recorded when incurred, not when paid.
- (n.) The right to receive something (such as interest, benefits, or income) as it accumulates over time.
The contract included an accrual of interest on unpaid balances.
Forms
- accruals
Related terms
See also
Commentary
Accrual is fundamental in legal accounting and financial reporting; precise drafting should distinguish it from cash-basis concepts.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.