påløpt

Påløpt is a Norwegian adjective meaning accrued or incurred. In accounting and finance, påløpt describes amounts that have been earned or costs that have been incurred during a period but have not yet been invoiced or paid. The term is closely tied to accrual accounting, which recognizes revenue and expenses when they occur rather than when cash is exchanged.

Påløpt inntekt (accrued income) occurs when a company has delivered goods or performed services but has not yet issued an invoice or received payment. It is recorded as an asset, typically accounts receivable, and as revenue for the period in which the earnings occurred. Påløpte kostnader eller utgifter (accrued expenses) arise when costs have been incurred but not yet billed or paid. These are recorded as a liability, such as accrued expenses or payables, and as an expense in the income statement for the period the cost relates to.

In practice, påløpt is used under international accounting standards (IFRS) or Norwegian GAAP (NGAAP) as part of the accrual basis of accounting. Period-end adjustments ensure that revenues and expenses are matched to the correct reporting period. Common examples include påløpt lønn (accrued wages), accrued interest, and accrued taxes.

Etymology: the verb å påløpe means to accrue or accumulate; the form påløpt reflects something that has accrued.