Accrued Interest

Some entities calculate the exact income that is due up until the end of their financial year. This involves calculating an accrual for the interest that has accrued from the last payment date up until the end of the financial year. Normally, this entry is reversed on the first day of the next financial year. Accruals of dividends and interest are handled using movement codes ACD and ACI, which use CGT rule codes V3 and V4 respectively. Accrued Interest should not be confused with Accrued Income.