Period-End Adjustments (+1)

Period-End Adjustments

1. Accruals: Record expenses incurred but not yet paid (AP accruals, payroll accruals, interest accruals)
2. Deferrals: Adjust prepaid expenses, deferred revenue, and deferred costs for the period
3. Depreciation and amortization: Book periodic depreciation/amortization from fixed asset and intangible schedules
4. Bad debt provision: Adjust allowance for credit losses based on aging analysis and historical loss rates
5. Inventory adjustments: Record write-downs for obsolete, slow-moving, or impaired inventory
6. FX revaluation: Revalue foreign-currency-denominated monetary assets and liabilities at period-end rates
7. Tax provision: Record current and deferred income tax expense
8. Fair value adjustments: Mark-to-market investments, derivatives, and other fair-value items

Reclassifications

1. Current/non-current reclassification: Reclassify long-term debt maturing within 12 months to current
2. Contra account netting: Net allowances against gross receivables, accumulated depreciation against gross assets
3. Intercompany elimination: Eliminate intercompany balances and transactions in consolidation
4. Discontinued operations: Reclassify results of discontinued operations to a separate line item
5. Equity method adjustments: Record share of investee income/loss for equity method investments
6. Segment reclassifications: Ensure transactions are properly classified by operating segment