financial-statements-period-end-adjustments

# 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