This sample provides detailed policies and procedures for managing a company’s accrued liabilities. It emphasizes the importance of accurately accounting expenses in the proper accounting period to match them with related revenues, which is essential for efficient and effective company operations and maintaining strong internal controls. It also outlines the purpose and scope of these policies, highlighting the need for compliance with management's objectives and generally accepted accounting principles (GAAP). It also stresses that documented policies and procedures must be simple, distinct and consistent to promote maximum efficiency and economy.

The document includes six sample policies, each addressing different aspects of accrued liabilities management. Sample 1 focuses on the definition and responsibility for items included in accrued liabilities, outlining monthly accrual processes and their importance. Sample 2 applies to all units of a company, detailing the establishment of accrued liabilities for future expenditures and the responsibilities of the corporate controller and managers. Sample 3 emphasizes the allocation of expenses to the proper accounting period. Sample 4 highlights factors to consider when recording payables and accrued liabilities. Sample 5 establishes guidelines for accounting for accruals, detailing the responsibilities of office accounting personnel and listing items to be included in accrued liabilities. Sample 6 establishes standards and procedures for monthly accruals, ensuring they are allocated to the correct accounting period and matched with related revenues. It emphasizes the need for timely and accurate accrual processes in compliance with applicable financial and accounting standards. Overall, this document serves as a valuable resource for organizations to implement standardized procedures for accurate financial reporting and compliance with accounting standards.

Sample procedures include:

• Obligations that accrue over time must be recorded over the accounting period systematically and rationally.  
• Amounts expected to be payable within one year must be recorded in the current accounts.  
• The accounting for accrued liabilities must be reported to the CFO and the disclosure committee and approved during the quarterly disclosure committee review meeting.  
• Payroll taxes withheld must be recorded at the time of the related payroll.