Where does accrual collide?

In law, a cause of action accrues at the moment the plaintiff first has a complete, enforceable claim, typically when the injury occurs or is discovered, and that moment starts the statute-of-limitations clock running. Garner's Black's law dictionary records this legal meaning of accrue. The referent is the legal instant at which a right to sue comes into being, fixing the deadline to bring suit, and it is a different construct from an accountant's matching of revenue to period or a trial's rate of patient enrollment, sharing only the root meaning of something coming due.[1]

Unit

The point in time at which a cause of action becomes complete and enforceable

Recovery means

Not applicable

Measured by

Determined by the legal event that completes the claim (injury, breach, or discovery), per the applicable limitations rule

In accounting, the accrual basis records revenues when they are earned and expenses when they are incurred, regardless of when cash actually changes hands, so that each period's statements reflect the economic activity of that period rather than its cash flows. Kieso, Weygandt, and Warfield's Intermediate accounting contrasts this with the cash basis and treats the adjusting entries (accrued revenues and expenses) that put it into effect. The referent is a recognition principle that times income and expense to the period of the underlying activity, and it is unrelated to a trial's enrollment pace or the legal accrual of a lawsuit beyond the shared idea of something accumulating due.[2]

Unit

Revenue and expense assigned to the period earned or incurred, not the period of cash flow

Recovery means

Not applicable

Measured by

Implemented through period-end adjusting entries that recognize accrued revenues and expenses