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 ?
If the taxpayer does not discover the mistake before filing its return for the year of sale (and accrues the incorrect amount), it has to file a refund claim (i.
In the case of the CFT, absent section 461(d), the 1972 change in the CFT law would have caused both the 1971 and the 1972 CFT to accrue for federal tax purposes in 1972.
This regulation, known as the "noncontingent bond method" allows an issuer to accrue an original issue discount (OID) deduction at a yield "comparable" to that of a fixed-rate instrument with similar terms and conditions, but without contingencies.
0 million which will initially accrue interest at 325 basis points over LIBOR and a five-year term loan for $50.
Instead, it accrues $15,000 in gross sales and includes that amount (less the corresponding cost of goods sold) in its 2002 gross income.
Dividend Rate: Dividends accrue on the Series A Preferred
1942) ("where interest actually accrues on a debt of a taxpayer in a tax year the statute plainly says he may deduct it.
Letter Ruling (TAM) 9538007 held that taxpayers must continue to accrue original issue discount (OID) on debt instruments even when the issuer's financial condition is such that there is no reasonable expectation that the accrued OID win be collected.
In these cases, interest accrues only until the filing date for the tax year giving rise to the carryback.
Thus, for example, an accrual method payor normally cannot deduct an item that it accrues as a liability to a related cash method recipient until the item is paid, at which time the recipient must include it in income.
Example 1: BA, an accrual-basis partnership, accrues an otherwise deductible expense to partnership CA, which is on the cash basis.
Accounting method change: If a company is not currently deducting interest as it accrues with respect to existing deferred compensation agreements that fit the profile in this case, the company most likely will have to request a change of accounting method from the IRS for current and new plans.