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ACCOUNTS
II. Functioning of accounts
Class 4.  Accounts receivable and payable

48. Accruals and deferrals

 

At the end of the financial year, account 481 " Deferred expenses " is debited with the expenses to be deferred over several financial years, including debt issuance costs, by crediting account 79 " Transfers of expenses ". At the end of each financial year, it is credited by debiting account 6812 " Amortization of deferred operating expenses " with the amount of the expenses attributable to that financial year, also in relation to the financial year of transfer.

Account 486 " Prepaid expenses " records expenses corresponding to the purchase of goods and services to be delivered or provided in the future. It is debited at the end of the financial year by crediting the relevant expense accounts. It is credited at the beginning of the following financial year by debiting the same accounts. Another way of accounting is to allocate the portion of the expenses relating to a future financial year directly to the accrual account 486 when the invoice is registered.

Account 487 " Deferred income " records income received or accounted for before the services or goods justifying them have been provided or delivered. It is credited at the end of the financial year by debiting the relevant revenue accounts. Account 4871 " Deferred income on tokens issued " specifically records amounts relating to services still to be provided or goods still to be delivered following the issue of tokens. These accounts are debited at the beginning of the following financial year by crediting the same accounts. Another way of accounting is to allocate the portion of the income relating to a future period directly to the 487 or 4871 accrual account when the invoice or token issue is registered.

Accounts 486 and 487 may be subdivided according to the classification of Classes 6 and 7.

On subscription, the issuer of bond warrants records the counterpart of the value of the warrants in account 487. When the warrants are exercised, the deferred income is recorded in the profit or loss over the term of the debenture loan. When the warrants expire, the amount of unexercised warrants is recorded in the profit or loss.

On subscription, the issuer of bonds with bond warrants records in account 487 the difference between the issue price of the bonds with bond warrants and the current value of the debenture loan. When the warrants are exercised, the deferred income is recorded in the profit or loss over the term of the loan. When the warrants expire, the amount of unexercised warrants is recorded in the profit or loss.

Account 488 " Periodic allocation of expenses and income " records expenses and income whose amount is known or determined in advance with sufficient precision and when a decision is made to allocate them in equal parts to the accounting periods within the financial year. This is the so-called periodic allocation method. During the financial year, the periodic allocation method is modified, if necessary, by adding or subtracting amounts, so that the total of the amounts debited or credited to the relevant accounts in Classes 6 or 7 is equal to the actual amount of the expense or income at the end of the financial year. Account 488 is balanced at the end of the financial year.

 

 
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