The balance sheet is an accounting financial report, which reflects the financial status of a company at a given time. It is structured based on three concepts: assets, liabilities and equity. Each account representing different assets.
The asset includes all accounts that reflect the values available to the entity. All assets are likely to bring money to the company in the future, either through use, sale or exchange. Net worth is assets less liabilities and represents the contributions of the owners or shareholders plus undistributed profits. The equity also shows the ability of the company to self-finance.
The basic accounting equation relates these three concepts: Equity = Assets — Liabilities. The sheet is part of the annual accounts that all entities should compile every year. Other components of the financial statements include a comprehensive income statement (also called profit and loss statement or profit and loss account), statement of changes in equity (also known as statement of changes in equity) and cash flow statement.
Structure of a balance sheet
The items are grouped and sorted according to criteria established to facilitate their interpretation and approval. The normally active elements are sorted according to their liquidity, that is, depending on the ease with which an asset can be converted into cash, the money deposited in the box is the most liquid.
The separation sheet is a document drawn up by Personal Accountant in Calgary in the reorganization of a legal entity. It contains information about shared assets, rights and responsibilities. The separation sheet should include provisions on succession for all obligations of the reorganized legal entity in respect of all of its creditors and debtors, including liabilities disputed by the parties.
The separation sheet approved by the Personal Accountant in Calgary and founders of the legal entity or body that made the decision on the reorganization of legal entities and are presented together with the founding documents for the state registration of the newly created legal entities or changes in the constituent documents of existing entities.
Failure to submit together with the founding documents of the separation sheet as well as the lack of provisions on succession for the obligations of the reorganized legal entity leads to denial of state registration of the newly created legal entities.
It has the shape of two-way table. The main components of the balance sheet are assets, liabilities and capital. Economic literature provides the following definitions of these concepts: assets, liabilities and capital.
The balance sheet as a form is drawn up usually at a specific date (the end of the calendar month, quarter, year).
