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Not only my opinion but also how most entities record trade payables (well most of the entities that I came across). Also, from an audit perspective, the argument of recording an amount as a trade payable without an unconditional obligation existing (either in the form of an invoice or some other fo...

Thanks Marek

For a transaction to fall into trade payables, then an invoice would have to be issued by the creditor. That would be the main difference between a trade payable and an accrual.

Thanks Marek. There seems to be differing opinions on this though. Some financial statements present accruals as financial liabilities.... whilst some do not. Hence the reason for my question. If there any specific guidance on this?

Hi All I just wanted to confirm WHY accruals will not meet the definition of a financial liability? My understanding is that in order to have a financial instrument, it has to give rise to a financial asset in one entity and a financial liability in another. Now an accrual represents an amount owing...