Accruals

I. Formal Definition

Liabilities or assets recognised in the period in which the economic event occurred, regardless of when the corresponding cash transaction takes place. Accruals are the mechanism by which accrual-basis accounting reconciles economic activity with cash movement. The federation requires material accruals to be disclosed by category, including accrued payroll, accrued vendor expense, and accrued tax. Accruals that reverse without a corresponding cash settlement are disclosed under MEV-Annex:4.1 with a documented justification per the close calendar published by the controller.

II. Etymology

From the Latin accrescere, to grow; the accounting sense stabilised in seventeenth century Italian double entry practice.

III. Federation Usage

Federation members maintain an accrual register reconciled at month end. Material reversing accruals without settlement are footnoted under MEV-Annex:4.1. Accrual policy changes are reportable under TGS-002:2.3.

IV. Related Terms

• accrual-accounting
• accrued-revenue
• accrued-expense
• deferred-revenue

V. Authoritative Citations

• UFMS-001:3.1UFMS Article III - Accruals
• MEV-Annex:4.1MEV Annex IV - Accrual Disclosure

VI. Citation in BibTeX

@misc{ifo4_glossary_accruals,
  title        = {{Accruals}},
  author       = {{IFO4 Federation Editorial Board}},
  howpublished = {{IFO4 Federation Glossary, slug \texttt{accruals}}},
  year         = {2026},
  url          = {https://ifo4.org/glossary/accruals},
  note         = {Category: Capital; key: Accruals}
}

VII. Challenge This Definition

Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.