accrue


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Accrue

To earn but not collect. For example, if a company makes $1 million in revenue but has not collected $250,000 before it must make its quarterly statement, it is said to have accrued $250,000 in revenue. By the same token, the interest a bond has earned between coupon payments is said to accrue. See also: Accruals.

accrue

To accumulate; grow. A $100,000 loan at 7 percent interest accrues interest at the rate of $7,000 per year, or $19.18 per day. The mortgage holder on a property being sold will typically tell the closing company a payoff amount accurate as of the anticipated closing date, with a daily accrual for each day closing is delayed.

References in periodicals archive ?
Accrue G2 is a comprehensive e-business analytic platform designed to provide companies in the publishing/media/entertainment, multi-channel commerce, and financial services segments with deep insight into the relationships between Web site activity and business actions.
For Federal income tax purposes, the debt's conversion feature is ignored; interest accrues at the debt instrument's overall yield based on the stated interest rate and any OID.
Accordingly, W accrues $13,000 of gross sales and includes $13,000 (less the corresponding cost of goods sold) in gross income in 2002, because the all-events test is met.
Dividends on such shares will thereafter cease to accrue.
E[acute accent](note 3) Domestic Flights of LAN Peru, LAN Express, LAN Airlines and LAN Argentina do not accrue miles on the first stage.
1991, a taxpayer was held to the contract terms of a loan document and was required to accrue interest when the taxpayer did not formally declare the notes to be in default.
Example 1: BA, an accrual-basis partnership, accrues an otherwise deductible expense to partnership CA, which is on the cash basis.
Interest shall accrue at 12%, compounded annually and payable in cash on the earlier of conversion of the principal amount of the debentures or at maturity.
Some of these arrangements also provide for "interest" to accrue on the amounts deferred until the benefits are paid to the participants.