When the auditor asks the accountant - " Have you hard closed november 2010 month ?" what exactly he means
Vivek Raju P
(Manager)
(614 Points)
Replied 05 January 2011
Hard close is normally something like a mock closing and usually done just before year end in large MNCs. say if their accounting year ends in Dec, hard close is done in Nov.
It will be like accruing all the provisions, true ups, starting the collection of data for impairments, fair value assessments. Starting the audit for the last quarter and the year so that any observations or differences may be corrected before year end and faster finalisation of numbers for press release can be done,
Anil
(1638 Points)
Replied 05 January 2011
Thank you very much sir for your answer.
Request you to plese let me know:
1) Is there something called " Soft close" in accounting? If yes, what does it mean?
2) If the books are HARD CLOSED say in Nov 10 and the books are fianlized in say Feb 11 should one say after closing " FINALLY CLOSED" because the books were hard closed earlier.
3)What are "true ups" in accounting?
Thanks
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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