Among many important judgment and decision that accounting people often take on daily basis, is whether to or not to accrue an expense. For some people, it may be an easy decision. But for many others, such decision could be tricky—in considering the consequences that come along the decision.
An accounting staff of my client, last week, asked me about whether she should or should not accrue an expense.
The answer could be as short as YES/NO; or as lengthy as a book chapter, but I would rather give some hindsight—so that she really understands the matter in question, in-and-out. That way, I can avoid the possibility of answering the same question in the future—and save my own time. So, should or shouldn’t you accrue an expense? What expense should/shouldn’t you accrue? Why? Read on…

