{"id":9038049,"date":"2024-12-23T10:47:21","date_gmt":"2024-12-23T10:47:21","guid":{"rendered":"https:\/\/www.gremicat.es\/?p=9038049"},"modified":"2024-12-23T10:47:21","modified_gmt":"2024-12-23T10:47:21","slug":"accrual-of-expenses-and-year-end-accounting-adjustments-for-income-tax-purposes","status":"publish","type":"post","link":"https:\/\/www.gremicat.es\/en\/accrual-of-expenses-and-year-end-accounting-adjustments-for-income-tax-purposes\/","title":{"rendered":"Accrual of expenses and year-end accounting adjustments for income tax purposes"},"content":{"rendered":"

When closing the accounts, do not forget to accrue both prepaid and deferred expenses. In this way, the accounts will reflect a true and fair view of your company and declare the correct accounting result.<\/h2>\n

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We are approaching the close of the 2024 corporate income tax year and, with it, the review of one of the most relevant tasks to ensure accounting and tax accuracy: the accrual of income and expenses. This process, in addition to being mandatory, allows a faithful reflection of the company’s economic situation, adjusting expenses and income to the year to which they really correspond, according to the accrual principle established by the General Accounting Plan (PGC).<\/p>\n

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Accrual principle<\/b><\/h2>\n

The PGC indicates that the effects of transactions should be reflected in the period in which they occur, regardless of when they are paid or received. This implies that, to comply with Article 11 of the Corporate Income Tax Law (LIS), taxpayers must record expenses and income in the period in which they actually accrue. However, it is possible to apply to the tax authorities for an alternative time allocation method, such as the cash method, provided that such application is submitted within the stipulated deadlines and the tax authorities do not respond negatively within six months.<\/p>\n

In exceptional and duly justified cases, the accrual principle may be departed if this allows a more accurate representation of the true and fair view of the company.<\/p>\n

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Accruals and deferrals<\/h2>\n

When closing your accounts, we recommend that you pay special attention to the following expense and income categories:<\/p>\n

1. Prepaid expenses<\/b><\/p>\n