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Accrual Basis of Accounting

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PPGPortal > Home > Concept Dictionary > A > Accrual Basis of Accounting

Accrual Basis of Accounting 

An accounting system that records revenues in the period in which they become earned (whether received or not) and the expenses in the period that resources are used.

(Graham, Andrew. 2007. Canadian Public-Sector Financial Management. Kingston, ON: School of Policy Studies, Queen’s University; Montreal: McGill-Queen’s University Press.)


The transactions and events are recorded in the accounting records and recognized in the financial statements of the periods to which they relate. The elements recognized under accrual accounting are assets, liabilities, net assets/equity, revenues, and expenses.


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