Accruals

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Accruals

On a balance sheet, an expense or asset that is recognized before it is paid. Accruals are recorded as liabilities or assets (depending on the type) and are recognized because of the extremely high likelihood of payment. Accruals are generally periodic payments; examples include salaries and accounts receivable from well-known customers. They are recorded as "accrued" on a balance sheet on the date the payment begins to be expected; they remain in this section of the balance sheet until they are actually paid.
References in periodicals archive ?
Under previous authoritative standards this amount was known as the unfunded actuarial accrued liability (UAAL) or unfunded actuarial liability (UAL); under the GASB's new pension pronouncements, it will be referred to as the net pension liability (NPL).
2 million reduction in general and administrative expense C related parties from the reversal of an accrued liability for acquisition and origination fees that will no longer be paid to the Trust's advisor.
When the latter exceeds the former, the result is what's called the unfunded actuarial accrued liability, soon to be known as the net pension liability.
For retiree health benefits, studies estimate that the total unfunded actuarial accrued liability for state and local governments lies between $600 billion and $1.
These checks are an accrued liability for a municipality until paid to the rightful vendor or until applicable law allows the jurisdiction to claim the funds through escheatage.
The effects of a termination benefit on an employer's defined benefit pension or OPEB obligations (for example, a change in an employer's actuarial accrued liability for pension benefits or postemployment healthcare benefits) should be accounted for and reported in accordance with the requirements of Statement 27 or Statement 45, respectively.
The common and simple approach used to compute the book-tax difference for these accrued liabilities is to subtract the ending balance from the beginning balance in the accrued liability accounts.
If the recurring item exception is elected, the economic performance test will be deemed to occur as of the close of the tax year, if the all-events test is satisfied, the accrued liability is paid by the earlier of 81/2 months after the close of the tax year or the date on which the tax return for the year in question is filed and certain other requirements of Sec.
The accrued liability figure is the present value of (1) benefits currently owed to retirees and (2) accrued benefits for active workers who will retire with these benefits.
Thus, the accrued liability on the balance sheet would reflect the difference between cumulative accrued expense and amounts paid (or funded).
Among them are retirement age, cost of living increases, amortization period of the unfunded accrued liability, employee and employer contributions, level of future benefits, and plan design.