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 ?
Reducing or eliminating COLAs, including for retirees and current employees, is one of the few pension reforms that can materially lower the accrued liability immediately.
Atthe end of Byrne's term, New Jersey was one of few state'sholding AAA ratings from all three major rating services and its publicemployee pension systems were funded at 105 percent of accrued liability.
(6) Even if the plan averages below 100% indefinitely, it may still be "sustainable" with contribution rates that cover amortization of the unfunded accrued liability (UAL).
To date, the investigation has identified the following items not yet reflected in our March 31, 2018 results as reported in our April 19, 2018 press release and which impact the quarter ended March 31, 2018, in addition to the approximately $1.4 million of expenses described above: failure to record amortization expense in the amount of $1.4 million to correct for amortization of an intangible asset that was inadvertently not recorded over a three-year period and discovered in March 2018; understatement of a health insurance accrued liability in the amount of $500,000; and failure to record an adjustment increasing the value of inventory in our Europe, Middle East and Africa region in the amount of $2.1 million due to inflation of raw materials costs.
As of 31 December 2016, the company's accrued liability related to the straight-line rent on the lease between the company and the City was approximately USD 2.2m.
"In 30 years, the city's accrued liability will exceed $2.1 billion,'' it added.
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).
Morningstar's pension plan analysis focused on two key metrics: funded ratio-the ability of a pension plan to meet its obligations, which is calculated by dividing the pension plan's assets by its liabilities; and unfunded actuarial accrued liability (UAAL) per capita-the unfunded liability per capita, representing the amount each person in the state would need to pay to fully fund this unfunded liability.
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.
The second quarter of 2012 also included USD 243,000 in after tax income related to the reversal of an accrued liability resulting from the settlement of litigation between VISA Inc.
It reported $208.05 million of the actuarial value of its assets and $343.21 million of actuarial accrued liability.
The actuarial present value allocated to prior years of employment is called the actuarial accrued liability.