What is periodisering (accrual accounting)?

In short

Periodisering means booking income and expenses in the period they relate to — not the period the money is paid. It gives a true picture of each period's result.

In practice

Pay a year of insurance in advance in November, and only two months should hit the old financial year; the rest is deferred to the new one. Typical accruals are prepayments, rent and subscriptions.

Related terms

• Efterpostering (adjusting entry)
• Årsafslutning (year-end close)
• Resultatopgørelse (income statement)
• See every term in the dictionary

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