Ülekandearvestus

Ülekandearvestus, commonly translated as accrual accounting, is an accounting method where revenues and expenses are recognized when they are earned or incurred, regardless of when the cash is actually received or paid. This contrasts with cash-basis accounting, which records transactions only when cash changes hands. The primary principle behind ülekandearvestus is the matching principle, which aims to report revenues and the expenses associated with generating those revenues in the same accounting period.

Under ülekandearvestus, if a company provides a service or sells a product, the revenue is recorded at the time of the sale or service delivery, even if payment is received later. Conversely, if a company incurs an expense, such as paying for supplies that will be used in the future, the expense is recorded when the supplies are used or the benefit is received, not necessarily when the bill is paid. This method provides a more accurate picture of a company's financial performance and position over a given period.

Ülekandearvestus requires adjusting entries at the end of an accounting period to ensure that all revenues earned and expenses incurred are properly reflected. These adjustments might include recognizing accrued revenues (income earned but not yet billed), deferred revenues (income received but not yet earned), accrued expenses (expenses incurred but not yet paid), and prepaid expenses (expenses paid in advance). Most businesses, particularly larger ones and publicly traded companies, are required to use ülekandearvestus for financial reporting purposes.