Matching concept

This refers to an accounting  concept that states that expenses must be reported in the same accounting period as the revenue to which they refer.

For example where a company pays commission to its agents for sales, the commission fees should appear in the same period as the revenues to which they refer – irrespective of when the fees are actually paid over.  The matching concept is also known as the accruals concept

The matching concept is a term normally found in financial accounting.

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