Encumbrance accounting definition
Encumbrance accounting means the method of accounting under which outstanding encumbrances are recognized as reductions of appropriations and the related commitments are carried in a reserve for encumbrances until liquidated, either by replacement with an actual liability or by cancellation. This method of accounting may be used as a modification to the accrual basis of accounting in accordance with generally accepted accounting principles.
Encumbrance accounting means the method of accounting under which outstanding
Encumbrance accounting means the method of accounting under which outstanding encumbrances are recognized as reductions of appropriations and the related commitments are car- ried in a reserve for encumbrances until liquidated, either by replacement with an actual liability