Archive / 4.3 Balance Sheet

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Distinction between short term and long term liabilities

Liabilities are normally divided into two subgroups on the balance sheet. There are other subgroups within those groups, but the major distinction that’s done with liabilities is dividing them into either as short term or long term liabilities. (more…)

A balance sheet defined

I think that there’s a really descriptive name given to an entity’s balance sheet for instance in the International Financial Reporting Standards. An entity’s balance sheet is also called as ‘statement of financial position’ and that’s exactly what a balance sheet in essence is.  (more…)

Presenting financial statements when merging with a business

You would think that merging businesses is something big corporations do is not for you; however in practice it is very much so that small businesses merge just as often. Whilst merging a company with another one is subject to all kinds or regulations, legal actions and so on, in terms of accounting there are […]

Which method for presenting current and non-current positions to choose?

You know that you have to make a distinction of current and non-current on your balance sheet, but which method to choose. See also our post regarding the two methods being described in “Distinction of current and non-current on statement of financial position”. Now when it comes to choosing the method, above all you must […]

Distinction of current and non-current on statement of financial position

First lets agree that the “statement of financial position” you may have heard or read about is something we also like to call “balance sheet” from time to time. Regardless of how you name it though, it still includes your company’s assets, liabilities and equity balances. Name does not change the contents.  (more…)

Bringing forward beginning balances

An account on the balance sheet consists of following components – brought forward balance, debits and credits for the period and carried forward balance (a sum of the brought forward balance, the debits and the credits) that’s taken as a new beginning balance to the next period. Brought forward balance or a beginning balance is […]