7.1.5.2 Current Profile Based Decrease

This method decreases the total value of the side of the balance sheet that is higher than the other side in the proportion of the current profile. Based on the spot balance sheet position provided as part of the illustration above, the liabilities side is greater than the assets side and hence is reduced to match the assets side based on the current liability profile as follows:

Table 6-20 Liability profile

Liabilities Side	Revised Current Profile (a)	Forward Balance (b)	Adjustments to Liabilities (c = a* Difference)	Adjusted Forward Balance (d = b + c)
Equity		275	0	275.00
Liability 1	46.15%	530	-92.30	437.70
Liability 2	53.85%	395	-107.70	287.30
Total	100.00%	1200	-200	1000

Note:

If the liabilities side is being decreased, equity is excluded from any adjustments as illustrated above. The total difference is only allocated to all liabilities other than equity, based on the revised current profile calculated for all liabilities excluding equity.