Accruals accounting

OilVoice  May 31  Comment 
The latest buzz that the U.S.  gas pipeline infrastructure market  is ablaze with is Williams Pip ...
The Hindu Business Line  May 27  Comment 
Sugar subsidy will be credited directly into farmers’ accounts, announces Modi
Forbes  Sep 21  Comment 
The news last week that U.S. household income surged 5.2% in 2015 was a welcome boost for a country still working its way out of the crater of the Great Recession. But a closer examination of the data shows the gains were far from evenly...
The Economist  May 19  Comment 
IT SOUNDS like a cult, but it wants to be a venture-capital fund of sorts. As The Economist went to press, the DAO (short for decentralised autonomous organisation) had already raised the equivalent of nearly $150m to invest in startups. This, say...
The Economic Times  Apr 6  Comment 
A demographic dividend is very unlikely to accrue to India anytime soon, as a large share of the country's youth lacks education.
The Economic Times  Mar 15  Comment 
"Final accounting is a most critical part. We want to put a proper system in place and started a pilot project," Rail Minister Suresh Prabhu said.
The Economic Times  Nov 26  Comment 
"I don't see too much impact coming through two years from here. GST is not a quick fix. This law is about incremental benefit as we move forward."
The Hindu Business Line  Oct 8  Comment 
Indian Railways is conducting a pilot study on introduction of accrual accounting at its Ajmer division and Ajmer group of workshops with the assistance of the Accounting Research Foundation of th...
The Economic Times  Jul 28  Comment 
"Our expectation is that Q2 will see some amount of increase in our margins. But we will see the full benefit of these steps only by Q3."


Related Articles


Accruals accounting is a method of accounting that records revenues and expenses at the time that a transaction occurs, regardless of when cash actually changes hands. Most companies operate under an accrual system.

A key reason for differences between an accrual accounting system and a cash-flow based one is buying on credit, or any other form of deferred payment. If a company closes a sale, but the customer doesn't pay for 60 days (after receiving a bill, etc) an accrual system would immediately recognize the sale, on the theory that the company is highly likely to be paid, while a cash-flow based accounting system wouldn't recognize the revenue until money actually changed hands.

An accrual system can more accurately depict a company's financial situation by recording revenues and expenses in a more timely manner. However, any accrual system is subject to management judgment - about when to accrue (ie, when a sale is considered "certain") and about the likelihood the company will eventually be paid for its services. However, there are accepted accounting standards for when to accrue and what assumptions can be made around bad debt for accounts receivable.

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki