What is the Accruals Concept?
The accruals concept is one of most important accounting concepts to understand. It forms a crucial role in ensuring the accuracy of the financial statements. Accruals can often confuse those …
Calculating Holiday Pay Accruals (FRS 102)
Under FRS 102, there is a requirement to recognise a holiday pay accrual for any employees who have a remaining leave balance at the year end. The accrual is essentially …
Journal Entries for Accruals
As discussed in our previous post, the journal entries required for accruals are quite simple. The purpose of an accrual is to recognize an expense before the invoice has been …
Accounting for an Invoice When the Goods Haven’t Been Received
However, what if on the flip side, we have an invoice come in but have not yet received the goods/services.