Accrual Accounting

Accrual Accounting is an accounting method that recognises revenues as they are earned and expenses as they are incurred.

The AASB says of the accrual basis of accounting that "the effects of transactions and other events are recognised when they occur (and not as cash or its equivalent is received or paid) and they are recorded in the accounting records and reported in the financial statements of the periods to which they relate."

External Links & References

  1. Wikipedia Article
  2. International Infrastructure Management Manual
  3. AASB Glossary
  4. Khan Academy
  5. Google Search
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