Accrued Income is income that is recognised or earned in the current accounting period, but hasn't been paid yet (eg. interest or dividends received). In the income statement, the income account will be credited while in the statement of Financial Position, a new account called accrued income will be created which is a current asset. This is a current asset as it is probable that economic benefit will flow to the business in the next accounting period. The cash flow statement will not be affected as no cash has been received and it does not follow the accrual basis.