Accounting - Accounting time lines
Accounting time lines
The following strategy is useful when dealing with balance day adjustments
such as depreciation.
Accounting time lines
It is often the case that the time line given for the exercise or report
does not match that of the financial year. This will mean that balance day
adjustments, in particular depreciation, prepaid and accrued items, need to
be matched against the actual reporting period.
Step 1 Draw a time line for the financial year.
2 Draw the time line for the actual reporting period.
3 Write the number of months below the second time line.
4 If dealing with depreciation the number of months over 12 is what you need to calculate depreciation for.
5 For accrued or prepared items draw a further time line representing the time accrued or prepaid. For example, if the actual reporting period is 3 months and an expense item has been paid for 4 months draw that line under the 3 month line.
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It is often the case that the time line given for the exercise or report does not match that of the financial year. This will mean that balance day adjustments, in particular depreciation, prepaid and accrued items, need to be matched against the actual reporting period.
Define accounting time line.
Clearly noted
The following strategy is useful when dealing with balance day adjustments such as depreciation.
Accounting time lines
Accounting -> Accounting time lines Accounting time lines The following strategy is useful when dealing with balance day adjustments such as depreciation. Accounting time lines It is often the case that the time line given for the exercise or report does not match that of the financial year. This will mean that balance day adjustments, in particular depreciation, prepaid and accrued items, need to be matched against the actual reporting period.
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What are accounting time lines?
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