Accrual FAQs:


Q: Is an accrual also often used as an abbreviation for the terms accrued expense and accrued revenue that share the common name word?

A: Yes, but they have the opposite economic/accounting characteristics.

Q: Are accruals liabilities to pay for goods or services that have been received or supplied but have not been paid, invoiced or formally agreed with the supplier, including amounts due to employees?

A: Yes, Although it is sometimes necessary to estimate the amount or timing of accruals, the uncertainty is generally much less than for provisions.

Q: Are accruals often reported as part of trade and other payables?

A: Yes, and whereas provisions are reported separately.