This is useful for Fresher who can easily understand the concept.

1. RECORD TO REPORT (R2R)

2. Meaning
 Record to Report (R2R) is a Finance and
Accounting (F&A) management process
which involves collecting, processing and
delivering relevant, timely and accurate
information. It provides strategic, financial
and operational feedback on how a business
is performing.

3. What Expect from GL Report
 Financial performance and position
 Key performance indicators/metrics
 Business commentary on the performance
 Reconciliation of actual results to budget,
forecast and prior year results

4. Accruals
 Accruals are revenues earned or expenses
incurred which impact a company's net income
on the income statement, although cash related
to the transaction has not yet changed hands.
 Accrual Accounting based on the revenue
recognition principle that seek to match
revenues to the period in which they were
earned.
 Accruals are bifurcated into 2 parts Accrued
Income and Accrued Expenses.

5. Accrued Income
 Accrued income has been earned but has yet to be
received.
 It is listed in the asset section of the balance sheet.
 Examples – Interest on Investment, Rent earned but
not collected, Commission due to being received
 Journal Entry – When Income got generated
Journal Entry Remarks
Accrued Income A/c Dr. Balance sheet Asset
To Income A/c Income statement

6.  When Money received in Account
 Final Entry
Journal Entry Remarks
Bank/Cash A/c Dr. Balance sheet Asset
To Accrued Income A/c Knock off with 1st entry
Journal Entry Remarks
Bank/Cash A/c Dr. Balance sheet Asset
To Income A/c Income statement

7. Accrued Expenses
 Accrued expenses has been incurred but not yet
paid.
 It is listed in the Liability section of the balance
sheet.
 Examples – Interest Payments on Loans,
Employee Salary, Bonuses.
 Journal Entry – When Expenses incurred
Journal Entry Remarks
Interest Expense Income Statement
Expense Payable Balance sheet Liability

8.  When Money paid from Account
 Final Entry
Journal Entry Remarks
Interest Payable Knock off with 1st entry
Bank A/c Balance sheet
Journal Entry Remarks
Interest Expense Income statement
Bank A/c Balance sheet