Accrual Accounting and its Benefits

Author: MC | Subject: Accounting

Accrual Accounting and its Benefits image
Article Excerpt: The accrual method of accounting is one that is preferred for use by most businesses and organisations and is an imposed requirement of most national and international accounting standard bodies, including the ISAB.  In essence, the concept of accrual accounting is based upon recording financial transactions within the business accounts at the date on which these have been incurred irrespective of when the financial settlement of that transaction occurs.