Accrued Interest Definition & Example
In accounting, accrued interest refers to the amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out. Accrued interest can either be in the form of accrued interest revenue, for the lender, or accrued interest expense, for the borrower.
What is accrued interest reversal?
Accrued interest is booked at the end of an accounting period as an adjusting journal entry, which reverses the first day of the following period. The amount of accrued interest to be recorded is the accumulated interest that has yet to be paid as of the end date of an accounting period.
Ending Accrual Balance, The balance of interest accruals at the end of the period.