Aging Accounts Receivable
Accounting glossary · Understand, connect, apply
An aging analysis groups receivable balances by how long they have been outstanding or overdue. It helps collection work and assessment of expected credit losses.
Example
Receivables are grouped as current, 1-30 days overdue, 31-60 days overdue and over 60 days overdue.
Remember the difference
An old balance is a risk indicator, not proof of a precise loss. Estimates should reflect relevant evidence and applicable credit-loss requirements.
Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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