vamseeachanta Period-End Adjustments (+1)
Period-End Adjustments
- Accruals: Record expenses incurred but not yet paid (AP accruals, payroll accruals, interest accruals)
- Deferrals: Adjust prepaid expenses, deferred revenue, and deferred costs for the period
- Depreciation and amortization: Book periodic depreciation/amortization from fixed asset and intangible schedules
- Bad debt provision: Adjust allowance for credit losses based on aging analysis and historical loss rates
- Inventory adjustments: Record write-downs for obsolete, slow-moving, or impaired inventory
- FX revaluation: Revalue foreign-currency-denominated monetary assets and liabilities at period-end rates
- Tax provision: Record current and deferred income tax expense
- Fair value adjustments: Mark-to-market investments, derivatives, and other fair-value items
Reclassifications
- Current/non-current reclassification: Reclassify long-term debt maturing within 12 months to current
- Contra account netting: Net allowances against gross receivables, accumulated depreciation against gross assets
- Intercompany elimination: Eliminate intercompany balances and transactions in consolidation
- Discontinued operations: Reclassify results of discontinued operations to a separate line item
- Equity method adjustments: Record share of investee income/loss for equity method investments
- Segment reclassifications: Ensure transactions are properly classified by operating segment