Accrual and deferral are very different in that they are based on the same concept but accrual is based off what happens during a specific period of time. For example, a sale is accrual because it happens at the end of the month. A sale is deferred because it is not yet finalized and we don’t know what the final outcome is.
In the case of a sale, it is accrual because it is final. It is not yet finalized because we need more time to determine the details. In the case of a deferred sale, it is deferral because the sale has not yet closed. But the point is the same – we need to know what happens during the deferred period of time.
One difference between accrual and deferral is that the latter is temporary, and the former is not. A deferred sale will continue on the market, just as the accrual sale will. We also don’t know how long the deferred period will last, or when the sale will be finalized. It could be months, or years, or never. The point is that the deferred sale is not final, it is not accrual.
We don’t know either. The accrual sale will continue until we find out that the deferred sale is final.
Of course, we don’t know when the sale will be final. Accrual is always final, and accrual is an order which will be issued immediately after the sale has happened. If we wait for the deferred sale to be officially final, then we might be waiting for months, but when the deferred sale is official, we might be able to take our time getting it wrapped up.
Accrual sales are basically the sale of land or a stock. If you sell land, you put the land to market, usually by auction, and you pay for the land in the end. If you sell a stock, you sell (say) 100,000 shares to the public. The public buys the shares at a price which is determined by the market. When you sell the shares, you receive the money in the end, usually by some sort of auction.
In both situations, you have to pay the price of the land, or the price of the stock, and you get your money at the end. But in deferred sales, you pay a percentage of the price of the land or the stock. Let’s say you start a deferred sale, and after two years you have $10,000 of the sale, so you pay $1,000 for the land and then $1,000 of the sale.
The way the share price is determined is by the market. The market knows what the value will be and that is the price investors are willing to pay. So if the market is telling you to buy 100 shares of stock at $50,000 in the beginning, then you should wait for a few weeks to see if the market will be telling you to buy more.
The way that the share price is determined is that you buy the stock, then you sell it. You can’t pay the price the market is telling you because you don’t have a good enough picture of what the market will be telling you. By the time you buy the stock, it’s too late for you to pay the price the market is telling you to pay. The market just tells you the price you should be paying.
It seems like there are two different ways to think about this. One is that you’re basically buying the stock and then selling it. This is called “accrual.” Some people call this “deferral.” You’re basically buying the stock and then waiting it out. This is called a market.