The accompanying unaudited interim Consolidated Financial Statements of Accenture plc and its controlled subsidiary companies have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. We use the terms “Accenture,” “we” and “our” in the Notes to Consolidated Financial Statements to refer to Accenture plc and its subsidiaries. These Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended August 31, 2023 included in our Annual Report on Form 10-K filed with the SEC on October 12, 2023.

The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that we may undertake in the future, actual results may differ from those estimates. The Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair presentation of results for these interim periods. The results of operations for the three and nine months ended May 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending August 31, 2024.

As of May 31, 2024 and August 31, 2023, the total allowance for credit losses recorded for client receivables and contract assets was $25,155 and $26,343, respectively. The change in the allowance is primarily due to immaterial write-offs and changes in gross client receivables and contract assets.

All available-for-sale securities and liquid investments with an original maturity greater than three months but less than one year are considered to be Short-term investments. Non-current investments consist of equity securities in publicly-traded and privately-held companies and are accounted for using either the equity or fair value measurement alternative method of accounting (for investments without readily determinable fair values).


	May 31, 2024		August 31, 2023
Equity method investments	$	22,202	$	23,985
Investments without readily determinable fair values	209,079		173,458
Total non-current investments	$	231,281	$	197,443

For investments in which we can exercise significant influence but do not control, we use the equity method of accounting. Equity method investments are initially recorded at cost and our proportionate share of gains and losses of the investee are included as a component of Other income (expense), net.

As of May 31, 2024 and August 31, 2023, total accumulated depreciation was $2,797,314 and $2,574,685, respectively. See table below for a summary of depreciation on fixed assets, deferred transition amortization, intangible assets amortization and operating lease cost for the three and nine months ended May 31, 2024 and 2023, respectively.


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023
Depreciation	$	138,132	$	165,053	$	406,374	$	446,844
Amortization - Deferred transition	74,196		91,480		265,552		247,080
Amortization - Intangible assets	133,097		101,814		364,353		331,095
Operating lease cost	172,293		240,601		520,522		605,329
Other	3,587		2,151		14,832		9,456
Total depreciation, amortization and other	$	521,305	$	601,099	$	1,571,633	$	1,639,804

During the second quarter of fiscal 2023, we initiated actions to streamline our operations, transform our non-billable corporate functions and consolidate our office space to reduce costs. We recorded $1.1 billion in fiscal 2023 related to these actions and expect to record approximately $450 million in fiscal 2024 for a total of $1.5 billion, primarily related to employee severance. The actual amount and timing of severance and other personnel costs are dependent in part upon local country consultation processes and regulations and may differ from our current expectations and estimates.


	Three Months Ended				Nine Months Ended
	May 31, 2024		May 31, 2023		May 31, 2024		May 31, 2023

North America	$	(3,677)	$	96,349	$	46,941	$	273,329
EMEA (1)	74,937		167,205		231,302		208,165
Growth Markets (1)	6,160		83,319		54,250		109,769
Total business optimization costs	$	77,420	$	346,873	$	332,493	$	591,263

(1)Effective September 1, 2023, we revised the reporting of our geographic markets for the movement of our Middle East and Africa market units from Growth Markets to Europe, and the Europe market is now referred to as our EMEA (Europe, Middle East and Africa) geographic market. Prior period amounts have been reclassified to conform with the current period presentation.

On November 27, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07, Improvements to Reportable Segment Disclosures, which requires entities to enhance disclosures regarding their segments, including significant segment expenses. The ASU will be effective beginning with our annual fiscal 2025 financial statements and requires a retrospective method upon adoption. We are currently evaluating the impact of this standard on our segment disclosures.