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accrual basis

   Also found in: Legal, Financial 0.06 sec.
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Noun1.accrual basis - a method of accounting in which each item is entered as it is earned or incurred regardless of when actual payments are received or made
accounting system, method of accounting, accounting - a bookkeeper's chronological list of related debits and credits of a business; forms part of a ledger of accounts
cash basis - a method of accounting in which each item is entered as payments are received or made


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In financial statements prepared on the accrual basis of accounting, employers should recognize a liability and expense for voluntary termination benefits (for example, early-retirement incentives) when the offer is accepted and the amount can be estimated.
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from cash to an accrual basis, resulting in the creation of a US$800,000 deficit.
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Schedule M-3 applies to C corporations with $10 million or more of total assets, generally determined on an accrual basis as of the end of the tax year.
IRS revises Schedule M-3 for C corps by Heffes, Ellen M. / Financial Executive
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