I found the following about accrued liability -newcomer546(Sleepyhead) @拉斯维加斯华人论坛:拉斯维加斯枫下论坛 The Rolia Forum of Las Vegas

I found the following about accrued liability

newcomer546(Sleepyhead)

Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. Examples would include accrued wages payable, accrued sales tax payable, and accrued rent payable.

http://en.wikipedia.org/wiki/Accrued_liabilities

(#68419@41)
Last Updated: 2012-10-19

你要给点backgroud，人家才能回答.。我说区别是一个是liabilities，一个是expenses，你也不答应啊。 -criss(criss); 2012-10-18 (#68370@41)

Xiexie. I got this question from interview. The controller asked me what is difference between accrued liability and accrued expense. I think it is preety much the same. Just like Amortization and Depreciation. -12652(12652); 2012-10-18 (#68373@41)

I answered Accrued expense is focusing on short-term items, I don't know it is right or not. -12652(12652); 2012-10-18 (#68375@41)

I would like to say that accrued liability is from the b/s perspective, meanwhile the accrued expense is from income statement perspective. Not sure if it makes to you or not. -qingying2012(qingying); 2012-10-18 (#68377@41)

这个是对的，一个是I/S ITEM，一个是B/S ITEM，两个是对应的，金额应该一样，方向相反。 -victor714(Victor); 2012-10-19 (#68427@41)

yes, I agree. No need to complicate it further. -criss(criss); 2012-10-19 (#68430@41)

你的比喻好像不对吧？应该相当于 accumulated amort，和amortization exp，不过，其实accumu amort是contra account，所以和accrued liab不一样 -criss(criss); 2012-10-18 (#68384@41)

This is a real particle question. We are dealing with these two items in the month end every month. Simple answer-- -wind_morning(风); 2012-10-18 {755} (#68392@41)

Accrued liability: you know some costs may happen in current month. But, you are not sure about the real amounts since you don’t have invoices yet. Then, you use accrual liability to accrue these costs. In the month end reporting mind, we need use a schedule to track accrual liability amounts for the whole year. Journal Entry: Dr Estimated cost CR accrued liability. (Reversal normally)

Accrued expense: you have invoices which belong to current month. So, these invoices are real costs which are not paid in time in current month. You have to accrue these costs in current period to reflect the accurate financial information for timing purpose. You use accrued expense. Journal Entry: Dr Accrued expense CR accounts payable. (Reversal normally)

Is Accounts Payable a control account? How can you post G/J entry to a control account? -newstudents(仲夏之雪); 2012-10-18 (#68393@41)
To me, they mean the same thing. For example, you can accrue audit fee on a monthly basis. Once you are billed for the year-end audit, you can reverse the accrued liability and adjust the difference. -newstudents(仲夏之雪); 2012-10-18 (#68395@41)
对头。还真没搞明白过呢。谢谢分享！ -qingying2012(qingying); 2012-10-18 (#68396@41)
I do not think you are right. -criss(criss); 2012-10-18 (#68397@41)

It makes sense to me. It`s good to discuss it. We will find out what it should be. -qingying2012(qingying); 2012-10-19 (#68398@41)

come on... when you posted invoices in your previous companies or doing momth end closing, is this what happend, unknown amount post to esitmated cost and accrued liab and known amount posted to accrued exp and AP? think about it... then -criss(criss); 2012-10-19 {1327} (#68404@41)
本文发表在 rolia.net 枫下论坛decide whether it makes sense to you or not.

Even we are not discussing these in the real life, accounting 101, introduction to accounting, college or univeristy couse, why we need to bring the idea of accural and deferral in the first place, what kind of problem is it trying to resolve in the accounting world?

thinking again, if today is Oct 3rd, you have not received the last week's invoice from Accountemp for the temp AP, $100 a day for 5 days, how do you post?

if you have the invoice for a box of pens you bought but it is at the end of the file so won't be able to posted it before the cut off time, you know the amount and have the invoice, what do you do?

you have the quota for a box of cutomized notebook, you have received notebooks, but not the invoices and you know, it will be more expensive than the quata but the ink used to print the cover will be actual usage plus margin. what do you do?
above is about the posting (unknown amount to accr. liab and known to ap,- the one I do agree)

below is about one of the differences betwwen accr. liab and accu. exp (of couse, there must be many other differences)
account payable and accural liability are both liabilities, why we need to present them seperately on BS?
do you see a line on the IS called accrued expenses? if not, where it it?更多精彩文章及讨论，请光临枫下论坛 rolia.net

:) I think you got the points. I did not see any account called accured expense on the income statement. I meant it is a concept for me,not a real account. Now we all know the answer. It`s good to have this discussion here. -qingying2012(qingying); 2012-10-19 (#68410@41)
Good points! I still believe that Accrued expense is B/S account under Current Liability. But Accured Liability you may have it under both Current Liablity or Long-term Liability. -12652(12652); 2012-10-19 (#68414@41)

Exp is IS item. I asked 2 questions is because those estimated cost/accru. liab. and accr. exp/ AP. -criss(criss); 2012-10-19 (#68417@41)

pmed -ruyan(如嫣); 2012-10-19 (#68400@41)

I just googled it. Accrued expense : Payment occurs before expense is incurred. ( prepaid rent) Accrued liability : payment is made after expense is incurred. (commission) -newcomer546(Sleepyhead); 2012-10-19 {360} (#68402@41)

see the link for details.

http://www.youtube.com/watch?v=tF49wTcBsGo

Crispy clear information with examples. Great! Way to go. Thank you! -goingconern(GoingConcern); 2012-10-19 (#68403@41)

google is a very powerful tool :) -newcomer546(Sleepyhead); 2012-10-19 (#68405@41)

this is what i found about accrued expenses using google. -criss(criss); 2012-10-19 {492} (#68407@41)
Accrued expenses are expenses that have been incurred, but not yet paid for.
To put it another way, an accrued expense is paid after being recorded on
the books. Every adjusting entry for accrued expenses debits an expense
account, increasing expenses on the income statement and reducing net
income, and credits a payable account, increasing liabilities on the balance sheet.

http://www.aipb.org/pdf/AdjustingEntries.pdf

oops... which one is right. it seems google is confused too.

From the title of the article, it seems like they do not distinguish ACCRUED EXPENSES and ACCRUED LIABILITIES. They are treating them the same concept. -newcomer546(Sleepyhead); 2012-10-19 (#68411@41)

Yes, I also agreed. My point is I think Accured expense is always under Current liabities. -12652(12652); 2012-10-19 (#68415@41)

I found the following about accrued liability -newcomer546(Sleepyhead); 2012-10-19 {360} (#68419@41)
Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. Examples would include accrued wages payable, accrued sales tax payable, and accrued rent payable.
http://en.wikipedia.org/wiki/Accrued_liabilities

this one looks good to me. Also if anyone is interested, IAS 37 (11), in summary, it tells what kind of expenses go to which liab (Trade payable aka AP, accrual or provision) -criss(criss); 2012-10-19 (#68424@41)

Accrued expense: -newcomer546(Sleepyhead); 2012-10-19 {440} (#68420@41)
Accrued expense is a liability with an uncertain timing or amount, the reason being no invoice has been received yet.[3] The uncertainty of the accrued expense is not significant enough to qualify it as a provision. An example of an accrued expense is a pending obligation to pay for goods or services received from a counterpart, while cash is to be paid out in a latter accounting period when the amount is deducted from accrued expenses.
http://en.wikipedia.org/wiki/Accrued_expense

I am inclined to agree with the concept in the article not on the youtube. -criss(criss); 2012-10-19 {36} (#68421@41)
if i have to choose one between two.
My point is google is powerful but not trustworthy. -criss(criss); 2012-10-19 (#68429@41)

Wow, cool! So simple. But we all were puzzled. Thank you for sharing! -qingying2012(qingying); 2012-10-19 (#68406@41)
is it right? -criss(criss); 2012-10-19 (#68409@41)

I dont' think so. payment before expene occurs is prepaid expense. -12652(12652); 2012-10-19 (#68412@41)
It does not really matter for me. Basically, we all thought they were the same thing based on the accouting cut off and matching principles. -qingying2012(qingying); 2012-10-19 {374} (#68413@41)
Let`s say the prepaid expense. It presents on the asset side. But it will be expenses for the following accounting period. So we call it accured expense. On the other hand, we all do accual for certain expenses like rent or utilities. Sometimes, we estimate the amount and credit payable.

So we know the nature of the transactions. We do the right entries. It`s done. :)

I usually do not reply this kind of topic. The answer is straightforward. But the problem is that some answers are really wrong, I do not think it is fair to leave it here -criss(criss); 2012-10-19 {82} (#68416@41)
misleading other people. At least, I feel I should at lease bring up the question.

An accrued expense is an expense that an entity has already incurred, but for which there is not yet any expenditure documentation in the accounting system. -ltp1(LeTianPai); 2012-10-19 {72} (#68426@41)

the definition of google result about expenses not yet paid is incorrect

@Las Vegas

I found the following about accrued liability

Replies, comments and Discussions:

More Topics