16/03/2018 What is the meaning of Accrued Billings?

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What is the meaning of Accrued Billings?

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kancs3118 May 31 2015, 06:58 PM, updated 3y ago Show posts by this member only | Post #1
Hi guys, i came across this term

"Accrued billings"

When reading the quarterly reports of a property developer, Global Oriental Berhad in the current assets
Getting Started section.
Group: Junior Member Just asking, what is the meaning of "accrued billings" used in the context of a property developer? What gives
Posts: 131 rise to "accrued billings"?
Joined: Aug 2013 I find it weird because property developers cannot recognise unbilled sales in its financial statements but
rather to recognise sales per the percentage of completion and this matched against its property development
costs in its P&L.

Thanks in advance for the help.

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cherroy Jun 1 2015, 11:04 AM Show posts by this member only | Post #2
QUOTE(kancs3118 @ May 31 2015, 06:58 PM)
Hi guys, i came across this term

"Accrued billings"
20k VIP Club When reading the quarterly reports of a property developer, Global Oriental Berhad in the current assets
section.

Group: Staff Just asking, what is the meaning of "accrued billings" used in the context of a property developer? What gives
Posts: 24,466 rise to "accrued billings"?

Joined: Jan 2003 I find it weird because property developers cannot recognise unbilled sales in its financial statements but
From: Penang rather to recognise sales per the percentage of completion and this matched against its property development
costs in its P&L.

Thanks in advance for the help.

Acrrued in accounting means something already happened, but actual full bill not yet coming.
Eg.
Your electricity bill date is 15th, and while your account date is 31st.

On 31st, you have still not yet receive the bill, but you can't take 15th bill as final, as there is still 16days of
usage/bill amount needs to be accounted for in order to reflect the actual situation on 31st,
so that's where the accrued column slot in.

I don't know about the mentioned specific company account issue, but accrued generally about the dating
issue of the bill.

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Jun 1 2015, 12:39 PM Show posts by
Carls_Nemesis
this member only | Post #3

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16/03/2018 What is the meaning of Accrued Billings?

symlife i bet?

Getting Started

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Jun 1 2015, 12:45 PM Show posts by this member only |
Pink Spider
Post #4
Revenue is recognised based on percentage of completion

Percentage of completion is usually based on budgeted cost

Say, sales value is RM150m, and budgeted cost is RM100m

And u already spent RM10m
So, u can recognise revenue of 10% i.e. RM15m
Formerly known as Prince_Hamsap
But, u have only billed your customer RM10m
Group: Senior Member
RM5m is accrued billing
Posts: 16,872

Joined: Jun 2011

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sjlum Nov 2 2015, 11:47 AM Show posts by this member only | Post #5
QUOTE(Pink Spider @ Jun 1 2015, 12:45 PM)
Revenue is recognised based on percentage of completion

Percentage of completion is usually based on budgeted cost

New Member Say, sales value is RM150m, and budgeted cost is RM100m
And u already spent RM10m
Group: Newbie So, u can recognise revenue of 10% i.e. RM15m
Posts: 1
But, u have only billed your customer RM10m
Joined: Jan 2015
RM5m is accrued billing

Pink Spider, thanks for the excellent explanation. What about unbilled sales? What's the difference between
unbilled sales and accrued billing? Thanks!
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Pink Spider Nov 2 2015, 11:58 AM Show posts by this member only | Post #6
QUOTE(sjlum @ Nov 2 2015, 11:47 AM)
Pink Spider, thanks for the excellent explanation. What about unbilled sales? What's the difference between
unbilled sales and accrued billing? Thanks!

I think same.

Not 100% sure, I'm not property accountant

Formerly known as
Prince_Hamsap http://www.masb.org.my/index.php?option=co...-activities-pg1
QUOTE
Group: Senior Member in respect of progress billings:
Posts: 16,872
1.accrued billings as current asset, representing the excess of revenue recognised in the income statement
over the billings to purchasers; and
Joined: Jun 2011

2.progress billings as current liability, representing the excess of billings to purchasers over revenue
recognised in the income statement;

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16/03/2018 What is the meaning of Accrued Billings?

Just different name for the same thing I think

This post has been edited by Pink Spider: Nov 2 2015, 12:00 PM
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Palmwalker001 Sep 27 2016, 02:57 PM Show posts by this member only | Post #7
QUOTE(Pink Spider @ Nov 2 2015, 11:58 AM)
I think same.

Not 100% sure, I'm not property accountant

http://www.masb.org.my/index.php?option=co...-activities-pg1
Just different name for the same thing I think
Look at all my stars!!
Unbilled sales will not be reflected in financial statements
Group: Senior Member
Posts: 4,014 The formula is as follows:

Joined: Sep 2014 Unbilled sale = total sales generated by SPA signed - total revenue

Total revenue= Billed sales + accrued billing (mean unbilled portion)

Accrued billing (current asset) = Revenue - Billing , when billing less than revenue recognised based on
stages of completion method

Progress billing (current liabilities) = Billing - Revenue, when billing more than revenue recognised based on
stages completion method
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