Time of Recording For Transactions Law and Legal Definition

The time of recording for transactions and, hence, for holdings is governed by the principle of accrual accounting. For financial claims and liabilities, changes of ownership are considered to have taken place at or be proxied by the time that the parties to the transactions record them in their books or accounts. If no precise date is fixed, the reporter may use the date on which the creditor received payment or the date on which some other financial claim was satisfied. For direct investment income data, dividends should be recorded as the date they are payable, reinvested earnings in the period in which they are earned, and income on debt as it is accrued.