02 June 2008
In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and owners' equity for an organization or individual on a specific date, such as the end of its financial year. A company balance sheet has three parts: assets, liabilities and shareholders' equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as the net assets or the net worth of the company. According to the accounting equation, net worth must equal assets minus liabilities. Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system Assets Current assets 1. inventories 2. accounts receivable 3. cash and cash equivalents Long-term assets 1. property, plant and equipment 2. investment property, such as real estate held for investment purposes 3. intangible assets 4. financial assets (excluding investments accounted for using the equity method, accounts receivables, and cash and cash equivalents) 5. investments accounted for using the equity method 6. Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool. Liabilities 1. accounts payable 2. provisions for warranties or court decisions 3. financial liabilities (excluding provisions and accounts payable), such as promissory notes and corporate bonds 4. liabilities and assets for current tax 5. deferred tax liabilities and deferred tax assets 6. minority interesting equity 7. issued capital and reserves attributable to equity holders of the parent company
02 June 2008
In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and owners' equity for an organization or individual on a specific date, such as the end of its financial year. A company balance sheet has three parts: assets, liabilities and shareholders' equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as the net assets or the net worth of the company. According to the accounting equation, net worth must equal assets minus liabilities. Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system Assets Current assets 1. inventories 2. accounts receivable 3. cash and cash equivalents Long-term assets 1. property, plant and equipment 2. investment property, such as real estate held for investment purposes 3. intangible assets 4. financial assets (excluding investments accounted for using the equity method, accounts receivables, and cash and cash equivalents) 5. investments accounted for using the equity method 6. Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool. Liabilities 1. accounts payable 2. provisions for warranties or court decisions 3. financial liabilities (excluding provisions and accounts payable), such as promissory notes and corporate bonds 4. liabilities and assets for current tax 5. deferred tax liabilities and deferred tax assets 6. minority interesting equity 7. issued capital and reserves attributable to equity holders of the parent company
02 June 2008
In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and owners' equity for an organization or individual on a specific date, such as the end of its financial year. A company balance sheet has three parts: assets, liabilities and shareholders' equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as the net assets or the net worth of the company. According to the accounting equation, net worth must equal assets minus liabilities. Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system Assets Current assets 1. inventories 2. accounts receivable 3. cash and cash equivalents Long-term assets 1. property, plant and equipment 2. investment property, such as real estate held for investment purposes 3. intangible assets 4. financial assets (excluding investments accounted for using the equity method, accounts receivables, and cash and cash equivalents) 5. investments accounted for using the equity method 6. Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool. Liabilities 1. accounts payable 2. provisions for warranties or court decisions 3. financial liabilities (excluding provisions and accounts payable), such as promissory notes and corporate bonds 4. liabilities and assets for current tax 5. deferred tax liabilities and deferred tax assets 6. minority interesting equity 7. issued capital and reserves attributable to equity holders of the parent company
02 June 2008
In financial accounting, a balance sheet or statement of financial position is a summary of the value of all assets, liabilities and owners' equity for an organization or individual on a specific date, such as the end of its financial year. A company balance sheet has three parts: assets, liabilities and shareholders' equity. The main categories of assets are usually listed first and are followed by the liabilities. The difference between the assets and the liabilities is known as the net assets or the net worth of the company. According to the accounting equation, net worth must equal assets minus liabilities. Records of the values of each account or line in the balance sheet are usually maintained using a system of accounting known as the double-entry bookkeeping system Assets Current assets 1. inventories 2. accounts receivable 3. cash and cash equivalents Long-term assets 1. property, plant and equipment 2. investment property, such as real estate held for investment purposes 3. intangible assets 4. financial assets (excluding investments accounted for using the equity method, accounts receivables, and cash and cash equivalents) 5. investments accounted for using the equity method 6. Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool. Liabilities 1. accounts payable 2. provisions for warranties or court decisions 3. financial liabilities (excluding provisions and accounts payable), such as promissory notes and corporate bonds 4. liabilities and assets for current tax 5. deferred tax liabilities and deferred tax assets 6. minority interesting equity 7. issued capital and reserves attributable to equity holders of the parent company
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