E
echo---pscbro
Hi,
I am a French accounting student who is now studying UKGaap
accounting. I have a book which for some applications in the Accruals
concept relates either Accruals or Expenses owing. Is there any
difference between the two?
Further to this, up to now, my understanding of this concept is that
an expense for which we don't have an invoice but we know the amount
(from a yearly contract such as the rent or insurrance fees) has to be
input in the accounting period of its consumption. To my eyes this can
be called an Expense owing.
Now, if the amount for the expense can't be determined precisely.
Taken for example 500 professional phones and communication contracts.
The subscription fees are the same. However, the amount related to
communication can change (those that exceed the contract) . We assume
it can change consistently. Would that still be an Expense owing or
Accruals or something else.
Can someone help me understand this better without going too far into
concepts...in a simple way.
Pcl
I am a French accounting student who is now studying UKGaap
accounting. I have a book which for some applications in the Accruals
concept relates either Accruals or Expenses owing. Is there any
difference between the two?
Further to this, up to now, my understanding of this concept is that
an expense for which we don't have an invoice but we know the amount
(from a yearly contract such as the rent or insurrance fees) has to be
input in the accounting period of its consumption. To my eyes this can
be called an Expense owing.
Now, if the amount for the expense can't be determined precisely.
Taken for example 500 professional phones and communication contracts.
The subscription fees are the same. However, the amount related to
communication can change (those that exceed the contract) . We assume
it can change consistently. Would that still be an Expense owing or
Accruals or something else.
Can someone help me understand this better without going too far into
concepts...in a simple way.
Pcl