Accounting

Accrual Accounting

المحاسبة على أساس الاستحقاق

📖 Definition

Accrual accounting records revenue when earned and expenses when incurred, regardless of when cash changes hands. Required by IFRS and Saudi accounting standards for most businesses.

In everyday Saudi accounting work, accrual accounting matters because it affects invoice accuracy, financial reporting, tax filing, or ZATCA compliance depending on the transaction.

📖 التعريف بالعربية

المحاسبة على أساس الاستحقاق تسجل الإيرادات عند اكتسابها والمصروفات عند تكبدها، بغض النظر عن وقت تبادل النقد. مطلوبة وفق معايير IFRS والمعايير المحاسبية السعودية لمعظم المنشآت.

💡 Example

Service delivered in December but paid in January: revenue is recorded in December under accrual accounting.

خدمة مقدمة في ديسمبر لكن مدفوعة في يناير: يُسجل الإيراد في ديسمبر وفق محاسبة الاستحقاق.

When this term matters

Invoices

Use the correct term and value before issuing ZATCA-compliant invoices or credit notes.

Reports

Map it to the right account, tax field, or compliance report to avoid reconciliation gaps.

Compliance

Keep the Arabic and English meaning aligned when working with auditors, ZATCA, or customers.

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