Definition of Fixed Assets: Fixed Assets are referred to property, plant, and equipment. These items are held and used in the production and supply of goods or services. Furthermore, this equipment has also been used to perform administrative tasks. In addition, the life of these fixed assets must be over a year in an accounting …
The balance sheet contains many items, including assets owned by the business, liabilities to be paid by the business, and equity in the financing structures. The presentation of all these items on a single page help to understand the financial position of the business. Generally speaking, the balance sheet is an equation where assets equal …
Investments in the Balance Sheet – Classification, Recognition, Measurement, and more Read More »
The assets held for sale are the non-current assets that the business intends to sell. In other words, confirm the intention of the business to sell the non-current assets converts the presentation of the non-current assets to the current assets. This is the change of classification which brings changes in the implications of the accounting …
Under the IAS 1 of IFRS(International Financial Reporting Standard), every business entity must comply with reporting and representation of financial data. Five financial statements are the most crucial and mandatory for reporting. A balance Sheet is one of the most important financial statements among all financial statements. The other four statements include the income statement, …
A company’s financial statements tell about a company’s financial health and position for different fiscal years. A balance sheet, often regarded as a financial position statement, is one of the most important financial statements. The balance sheet is based on the accounting equation. The accounting equation states that: Assets = Liabilities + Shareholder’s Equity A …
International Financial Reporting Standards(IFRS) dictate the companies the standards for preparing the financial statements. According to the standards and regulations, companies must disclose their financial statements. Preparation of statements is mandatory according to the standards. The financial statements should be fair, transparent, and comparable around the world. Compliance with accounting standards is necessary. Financial reporting …
What Are Balance Sheet Accounts? (Detail Explanation) Read More »
The goal of every organization, especially a profit-making organization, is to maximize profits and minimize losses. If this must be achieved, then accurate transactional records of the business must be kept and reviewed periodically. Thus, this would require that a functional accounting system be set up to keep track of all financial transactions related to …
Relationship Between A Balance Sheet And Financial Statement Read More »
The balance sheet of a bank is quite different from that of other companies and businesses. Some elements that make up a company balance sheet, such as accounts receivables, accounts payable, and inventory, will not be seen in a bank’s balance sheet. Rather, you will come across things like investments and loans, deposits, and borrowings. …
Understanding the Balance Sheet of A Bank (Explained) Read More »
Both balance sheet and profit and loss are important financial statements mostly used for keeping accounts. It is used mostly by business owners. It includes assets, equity for shareholders, and liabilities. Define balance sheet A balance sheet is a statement used mainly for financial modeling and accounting. It is used to show how a company’s …
The Different Between Balance Sheet and Profit And Loss You Might Not Know Read More »
As a shareholder or a potential company investor, it is essential to know how a balance sheet works, and how it is organized, analyzed, and read. To read your balance sheet, you need to evaluate your company’s assets, liabilities, and equity to better view what your company holds and owns at any time. Whether you’re …
