Accruals
Completeness is provable: the accrual schedule must agree to the accruals account in the trial balance. Quality is a separate question, and the engine asks it separately — a balance held at exactly last period's figure is not wrong, but it is indistinguishable from one nobody re-estimated.
How good these estimates have proven to be
An accrual is a forecast. The only honest evidence about a forecast is what happened last time — so each is scored against what the prior period actually settled at.
| Accrual | Basis | Accrued last period | Actually settled | Out by | Track record | This period |
|---|---|---|---|---|---|---|
ACC-04 Staff performance bonus | Board-approved bonus pool at 8 per cent of profit before tax | 195,000 | 268,000 | -27.24% | unreliable | 240,000 |
ACC-07 Other operating accruals | Aggregate of individually immaterial items | 20,500 | 17,300 | +18.5% | acceptable | 20,000 |
ACC-02 Legal and professional advisory | Unbilled fee estimates confirmed with each adviser | 44,000 | 51,200 | -14.06% | acceptable | 42,500 |
ACC-01 Audit fee for the financial year | Signed engagement letter for the FY2025 audit | 78,000 | 79,500 | -1.89% | reliable | 85,000 |
ACC-03 Utilities for December | December meter readings extrapolated to period end | 17,900 | 18,050 | -0.83% | reliable | 18,350 |
ACC-05 Port and berthing charges | Port authority statements for December received 6 January | 84,600 | 85,100 | -0.59% | reliable | 96,500 |
ACC-06 Marine and liability insurance | Policy schedule apportioned to the period | 58,000 | 58,000 | 0% | reliable | 62,000 |
| Schedule as a whole | engine | 498,000 | 577,150 | -13.71% | 564,350 |
The schedule under-accrued by 13.71per cent last period. That is not an error in this period’s figures — it is the reason to look harder at the ones produced by the same method.
Accrual schedule
Each item carries the basis it was computed on and the evidence supporting it
| Accrual | Basis | Flags | This period | Prior | Movement |
|---|---|---|---|---|---|
ACC-01Audit fee for the financial yearProfessional fees · Group · ACC-EL-2025 · reverses next period | Signed engagement letter for the FY2025 audit | Clean | 85,000 | 78,000 | 7,000+9.0% |
ACC-02Legal and professional advisoryProfessional fees · Group · ACC-LEG-2025 · reverses next period | Unbilled fee estimates confirmed with each adviser | Estimated rather than measured | 42,500 | 44,000 | (1,500)-3.4% |
ACC-03Utilities for DecemberOperating · All · ACC-UTIL-2025 · reverses next period | December meter readings extrapolated to period end | Estimated rather than measured | 18,350 | 17,900 | 450+2.5% |
ACC-04Staff performance bonusPayroll · All · ACC-BON-2025 · reverses next period | Board-approved bonus pool at 8 per cent of profit before tax | Last period’s estimate missed badly | 240,000 | 195,000 | 45,000+23.1% |
ACC-05Port and berthing chargesOperating · All · ACC-PORT-2025 · reverses next period | Port authority statements for December received 6 January | Clean | 96,500 | 84,600 | 11,900+14.1% |
ACC-06Marine and liability insuranceOperating · Group · ACC-INS-2025 · reverses next period | Policy schedule apportioned to the period | Estimated rather than measured | 62,000 | 58,000 | 4,000+6.9% |
ACC-07Other operating accrualsOperating · All · ACC-OTH-2025 · reverses next period | Aggregate of individually immaterial items | Clean | 20,000 | 20,500 | (500)-2.4% |
| Total accrued | engine | 564,350 | 498,000 | 66,350 | |
| Accruals and other payables per the trial balance | 564,350 | ||||
| Difference | Nil |
Accrual quality
Every flag below is a fact about how the accrual was arrived at. The agent judges what it means.
ACC-04Staff performance bonusHigh- Last period this was accrued at 195,000 and settled at 268,000 — out by 27.24 per cent. The same method produced this period's figure.
Last period this was accrued at SGD 195,000 and settled at SGD 268,000 — out by 27.24 per cent. This period it is carried at SGD 240,000 on the same basis, so the error is more likely to repeat than not. The size of the balance is not the problem; the method is.
Re-estimate on the outturn rather than the original basis, and hold the difference against the prior period so the pattern is visible next close.
ACC-06Marine and liability insuranceLow- The basis is an estimate — "Policy schedule apportioned to the period" — rather than an amount measured from a document.
The accrual is supported by ACC-INS-2025 and moves broadly with activity. It was surfaced by a single flag rather than a pattern, and the same basis landed within 0 per cent last period.
No action beyond retaining the supporting document.
ACC-02Legal and professional advisoryLow- The basis is an estimate — "Unbilled fee estimates confirmed with each adviser" — rather than an amount measured from a document.
The accrual is supported by ACC-LEG-2025 and moves broadly with activity. It was surfaced by a single flag rather than a pattern.
No action beyond retaining the supporting document.
ACC-03Utilities for DecemberLow- The basis is an estimate — "December meter readings extrapolated to period end" — rather than an amount measured from a document.
The accrual is supported by ACC-UTIL-2025 and moves broadly with activity. It was surfaced by a single flag rather than a pattern, and the same basis landed within 0.83 per cent last period.
No action beyond retaining the supporting document.