Accruals, or deferred income, provide information about the accrued income situation for the defined period in the balance sheet. This means that expenses and earnings are assigned to the period in which they took place. Accruals are placed into the asset side (accrued income) as well as on the liabilities side (deferrals) of the balance sheet. Accrued income represents transactions for which payment was made during the previous year, but the expense was assigned to the new year. Conversely, deferrals are transactions for which the payment has been received in the old year, but the income must be assigend to the new year.