accrualbaserte

Accrualbaserte accounting, or accrual-based accounting, is a method of recording financial transactions in which revenues and expenses are recognized when they are earned or incurred, not when cash is received or paid. This approach aims to reflect the economic activity of a period and is the basis for most modern financial reporting under standards such as IFRS and US GAAP.

Key principles include the revenue recognition principle, recognizing revenue when performance obligations are satisfied, and the matching principle, allocating expenses to the revenues they helped generate. As a result, financial statements typically show assets and liabilities such as accounts receivable, accounts payable, accrued liabilities, and deferred revenue, even before cash changes hands.

Compared with cash-basis accounting, accrual-based accounting provides a more accurate picture of profitability, liquidity, and financial position over time. It requires more estimation, judgment, and robust information systems to track obligations and timing, making it more complex and costly to implement and maintain. Tax treatment can also differ from financial reporting in some jurisdictions, with authorities permitting or requiring different methods for taxation.

Applications of accrual-based methods are common in corporate financial reporting and in many government and non-profit contexts. Budgeting can also adopt accrual-based approaches to reflect long-term obligations and resource use. Implementation typically involves clear policies for revenue recognition, capitalization, depreciation, accruals, and internal controls to ensure reliable and consistent reporting.