Definition: Revenues earned or expenses incurred for which cash has not yet been received or paid. Under accrual accounting, these items are recorded in the period in which they occur to accurately reflect a fund’s financial position.
Example: If a project is completed in December but payment is received in February, the revenue is accrued and recognized in December, when it was earned.
Explore IVP Shadow Accounting Services
Accruals are one of the key accounting adjustments that buy-side firms can review earlier with IVP Shadow Accounting Services. By independently calculating items such as management fees, performance fees, interest income, and operating expenses, firms gain better visibility into their NAV before the administrator’s final delivery.
IVP Shadow Accounting Services enable hedge funds and asset managers to outsource full or partial accounting functions, improving operational efficiency, control, and scalability—especially for funds with complex investment strategies.
