Aphids: definition and meaning
AphidsInsects known as plant lice, belonging to the order ofRhynchota, which live mainly in the buds of plants at the expense of the sap, in often very numerous colonies.
To know more: The main enemies of our plants: aphids.
Botanical dictionary from A to Z.
A - B -C -D -E -F -G -H -I -J -K -L -M -N -O -P -Q -R -S -T -U -V -W -X -Y - Z
1 Action and result of disposing, of placing ordering
|| How something is arranged: this d. of the furniture is in bad taste the d. of books on the shelf
|| MAT Number of ways in which the elements of a set can be arranged in a given order
|| RET Part of the rhetoric concerning the order of matter in prayer
SIN. trim, location
2 Order, decision, command: give and impart precise instructions to employees we have not received any d.
|| DIR Standard, prescription: comply with the provisions of the law testamentary dispositions
3 Option to dispose, to use thing or person: the house is in your d.
|| Having something available, at one's disposal, being able to dispose of it according to need, faculty, judgment
|| Making something available to someone, making sure they have it freely
|| To be, to put oneself, to keep oneself available to someone, at his orders
4 fig. State of mind, state of mind: feel in a d. little happy
5 fig. Attitude, propensity, natural inclination: has a lot of d. to the, to, to the music
|| Inclination of the soul: they all showed bad d. towards him
|| MED Tendency of an organism to suffer the consequences of a harmful cause
Accruals - Definition and Meaning
In this guide we explain what active accruals are.
Accruals are settlement entries, necessary to align economic and financial values at the end of the year. The company's activity tends to be infinite, but for fiscal and bureaucratic reasons, as well as practical, it is conventionally divided into exercises each lasting 365 days, 366 days for leap years. This interruption by the rules entails the need to settle the values of an economic nature with those of a financial nature, which in the short and medium term may not coincide. In the case of accruals, we are in the presence of costs and revenues that have already accrued, but which have not yet occurred financially.
In particular, accrued income are portions of revenues that have already occurred, but for which the monetary realization will occur in the following year. The typical case could consist of the collection of interest income on a loan disbursed to third parties in the following year, although it is the responsibility of the closing year. Example, the company Alfa has lent money to the company Beta for 100,000 euros at an interest rate of 5% per annum on June 30, 2017. The company Beta undertakes to pay the interest relating to the first year of financing as of June 30 2018. Now, on this date, Alfa will collect 5,000 euros, but part of this amount belongs to the previous year. In particular, just half of this sum must be counted as revenue in 2017, so at 31 December 2017 the Alfa company will have to record an accrued income of 2,500 euros, or revenues accrued, even if not yet materially collected.
On the contrary, the Beta company will have to carry out the opposite reasoning, on 31 December 2017, when its annual financial statements will conventionally be closed, other closing dates possible, such as for agricultural companies, it will not have materially paid out a single euro for interest on the loan obtained, but of the 5,000 euros that it will have to pay on 30 June 2018, half of it relates to 2017. Therefore, it will have to enter an accrued expense of 2,500 euros in the balance sheet, or an accrued cost, although it has not yet been financially supported.
It is important to be careful not to create confusion with the concepts of deferred income and liabilities, which mirror those of accruals. In the case of deferrals, in fact, we are in the presence of financial manifestations anticipated with respect to the economic ones, in the sense that the company records a collection or an outlay even before the revenue or cost has been realized respectively on the basis of competence.
The accrued income appears in the balance sheet in the balance sheet under item D of the assets, the liabilities under item E of the liabilities. In fact, an accrued income is nothing more than a revenue that has already matured, or a positive income component, which increases the value of the assets, even if at the moment the same has not happened on the financial level.
The accounting standard OIC, Italian Accounting Body, 18 prevents registration as accruals for invoices to be issued or received or in relation to costs and income not determined in their amount, the competence of which has accrued in full during the year.
Let's see how we calculate the amount of an accrued income. Since this is revenue still to be collected in a subsequent year, it is first necessary to determine the period of competence of this revenue for the current year. Assuming that we have rented a shed for the annual sum of 24,000 euros and that the contract runs from 16 November 2019, the relevant revenue for 1 month and a half, or for (24,000: 12) x 1 , 5 = 3,000 euros. Therefore, the lessor company will have to record an accrued income of 3,000 euros in the balance sheet, equal to 45 days of competence of the revenue collected in full in the 2020 financial year. On the contrary, the company that rented the shed will not have paid out anything at the end of 2019, having to make the first annual payment only on 15 November 2020, but must take into account the fact that part of this payment will refer to the 2019 financial year and exactly for the sum of 3,000 euros. Basically, it will have to enter a pro-quota accrued expense in the balance sheet.
As can be understood, if this conventional temporal subdivision did not exist, there would be no need to proceed with the settlement entries, since there is no need to present a balance sheet relating to a summary period of time. Instead, since this division of business activity into financial years is necessary, the economic sphere must be reconciled with the financial one, or to align costs and revenues with the respective anticipated or deferred financial manifestations of payments and collections. From this arise the concepts of accruals and deferrals.
Clearly, an accrued income can refer to receipts that will not necessarily be made in the following year, but in one that is even more distant in time. For example, a company may have to book an accrued income for an accrued revenue, in relation to a collection that will materialize only in two or three years. In the case described above of the lease of a warehouse, the parties could decide, for example, to settle in cash only every two years, so the first collection for the lessor company will take place on November 15, 2021. You will have the registration of an active installment for the remaining 45 days of the year 2019, but also of a second for the whole of 2020.