Where we show accured management fees in financial statements?

Question

Accepted Answer

Accrued management fees are shown in the financial statements under the liabilities section.

Accrued management fees are recognized as a liability in the financial statements.
They are typically reported under the current liabilities section.
The amount of accrued management fees is based on the agreed-upon fee and the period for which the fee is earned.
For example, if the management fee is 2% of assets under management and the assets under management are $10 million, the accrued management fee for a quarter would be $50,000.
Accrued management fees are typically disclosed in the notes to the financial statements.

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