FTB-C000724 / Financial concept

Accounting accrual

An accounting accrual recognizes period-related income or expense independently of when the corresponding cash is received or paid.

Also known asaccrual

Intermediate 2 linked topicsEvidence-reviewed

Definitions

In plain terms

The entry places the earned or incurred amount in its relevant accounting period, subject to the applicable recognition rules.

Technical

D30 schedules a selected balanced synthetic accrual and a separately identified reversal under explicit period and retry policies.

Scope

Measurement and recognition depend on the framework and event; a scheduler alone cannot establish them.

Examples

  • A synthetic unpaid service expense is accrued at period end before its later payment.

Common misconceptions

  • Cash movement timing alone does not determine every expense recognition date.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. Adjustments to financial statements ACCA · first party technical publication

    Supports: preferred label, short definition, variant distinction

    Limits: Illustrative financial accounting; specific recognition and measurement require the applicable framework.

  2. D30 glossary teaching-profile scope, Batch 013 The Fintech Builder · internal governed contract

    Supports: technical definition

    Limits: No independent regulatory mandate, real-bank dataset, service execution, external witness or production assurance is claimed.

Reviewed by
fintech-builder-batch-013
Last reviewed
2026-10-27
Next review
2027-10-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.