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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.


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 ?
We reach this conclusion, because section 461(d) requires that, in the case of accrual basis taxpayer, to the extent any action of a taxing jurisdiction taken after December 31, 1960, accelerates the time for accruing a tax liability, then such taxes shall be treated as accruing at the time they would have accrued but for such action of the taxing jurisdiction.
The threshold for not accruing income is more substantial than in those situations in which income is accrued and a comparable bad-debt chargeoff is recorded.
Therefore, even though a corporation may have properly planned for the unrealized built-in gain with respect to its receivables by accruing additional compensation to its shareholder-employees to offset it, the recognized built-in gain from these receivables becomes inflated on collection.
Amending plans: Employers should carefully consider the consequences of modifying existing deferred compensation plans to obtain current rather than deferred deductions for interest accruing on the compensation.
In addition, GTS announced that it has amended the indenture to provide for payment of interest accruing from January 15, 2000, to but not including the redemption date to any holder of bonds that converts prior to the redemption date.
Since 1982, however, the IRS's position, as expressed in GCM 38864, has been that only rehabilitation deductions and losses excluded from the definition of built-in deductions are those economically accruing in postaffiliation years.
871(a)(1)(C)(i) or 881(a)(3)(A), tax is imposed on the amount of OlD accruing while such obligation was held by the foreign investor who receives the retirement proceeds.