Opening Balance

Opening balance refers to the existing account balance at the beginning of the period. Opening balances are based on prior period ending balances and reflect transactions in prior periods and the results of accounting policies applied in prior periods. The existing account balance at the beginning of the period is the amount carried forward from the previous period to the current period, or the amount adjusted by the closing balance of the previous period. Generally, the opening balance is the balance carried over from the previous period account to the current period account, which is equal in amount to the previous period ending balance of the corresponding account. However, due to the influence of various factors such as events after the previous period, changes in accounting policies, correction of accounting errors in the previous period, etc., when the closing balance of the previous period is carried forward to the current period, sometimes it needs to be adjusted or restated.