Accrual and deferral?
The assignment of an organization's receipts and expenditure to particular periods, for purposes of calculating the net income for a specific period.
A distinction is made between:
• Accruals -
An accrual is any expenditure before the closing key date that represents an expense for any period after this date.
• Deferral -
Deferred income is any receipts before the closing key date that represent revenue for any period after this date.
The assignment of an organization's receipts and expenditure to particular periods, for purposes of calculating the net income for a specific period.
A distinction is made between:
• Accruals -
An accrual is any expenditure before the closing key date that represents an expense for any period after this date.
• Deferral -
Deferred income is any receipts before the closing key date that represent revenue for any period after this date.
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