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Balance Sheet Adjustments
Changes made to the target company's balance sheet to reflect fair value adjustments, liabilities, or other factors identified during due diligence.
Implications
Refers to changes made to a company's balance sheet to reflect the current value of assets and liabilities, often during audits or financial restructuring.
Example
Example: A company makes balance sheet adjustments to write down the value of obsolete inventory, ensuring the balance sheet reflects true asset values.
Related Terms
Different from income statement adjustments, which affect profit and loss, balance sheet adjustments impact the company's financial position at a specific point in time.
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