Accrued revenue
In accounting, accrued revenue means revenue earned and recognized before it is invoiced. ASC 606 splits it: an unbilled receivable where only time stands between it and payment, a contract asset where the right still depends on further performance.
- Layer
- Lexicon
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Authority
This definition follows ASC 606-10-45-3.
Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.
What it is not called
Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.
- deferred revenue (the opposite timing)
- contract asset unqualified
Nearby in the catalog
No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.
6Statements
Family specTerms this one depends on
- Unbilled receivableRevenue recognized where the right to payment is unconditional but the invoice has not yet been issued — a receivable, not a contract asset
- Contract assetRevenue recognized ahead of an unconditional right to payment — the right still depends on something other than the passage of time
- RevenueInflows or enhancements of assets, or settlements of liabilities, from delivering goods or services — recognized when control transfers, not when cash arrives
- AssetA present right of the entity to an economic benefit (FASB CON 8 ¶E16)
Also in Revenue recognition
Work with this concept
The calculators that compute it and the ledger payloads that carry it. A definition is where a reader starts; these are where they go next.
- Deferred revenue vs accrued revenueDeferred revenue is cash billed or received before the work is done, a liability; accrued revenue is work done before it is billed, an asset — they are the same timing gap in opposite directions.Compare
- Journal entry for accrued revenueAt month-end, debit Unbilled receivables and credit Revenue for work delivered but not yet invoiced. When the invoice goes out, debit Accounts receivable and credit Unbilled receivables.Entry
Defined in Lexicon. This page is generated from that document, so the two cannot disagree.