Accrued income
Accrued income is income earned by the reporting date that has not yet been received or recorded as receivable. An adjustment recognises the income in the period earned and an associated asset. The adjustment debits accrued income and credits the relevant income account; its later receipt settles the asset rather than earning the same income again.
Worked example
Interest of 100 earned by year end but received later is recognised as income and an accrued income asset.
Common mistake
Confusing accrued income with money received in advance, which may be a liability.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: income receivable