A benefit refers to a measurable and desirable outcome from an investment, resource, project or technology. Accrued Benefits are a form of income that are not yet received but will be received at a point in time. Accrued Benefits can include the coverage on a pension plan earned by an employee. It may also include the personal time off, sick leave or vacation related benefits. For instance, an employee will receive his or her regular salary when he is on a vacation. Also, when an employee is terminated or when an employee retires, he or she is entitled to receive all the accrued benefits. In the simplest form, Accrued Benefit is the money, owed by the employer to the employee.
Some Examples of Accrued Benefits
The pension benefit earned by an employee is based on his or her period of service in the company. These benefits are usually calculated in relation to the salary scale of the employee.
There are other types of Accrued Benefits as well. These can include a target benefit plan, a purchased life insurance plan, a profit sharing plan and so on. These benefits are an asset to us but the monetary benefit is not paid to us immediately.
