imported>Doug Williamson |
imported>Doug Williamson |
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| 1.
| | ''Accounting - financial instruments''. |
| One of the primary statements of a reporting entity's financial accounts.
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| The balance sheet lists the assets, liabilities and shareholders’ funds at the balance sheet date.
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| Under the 'double entry' accounting convention, assets are Debits (DR) and liabilities and shareholders' funds are Credits (CR).
| | Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. |
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| The standard UK balance sheet presentation for external reporting is Net Assets = Shareholders' Funds.
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| The Net assets part of the balance sheet is sometimes called the 'top half'.
| | == See also == |
| The Shareholders' funds part being the 'bottom half'.
| | * [[Available-for-sale]] |
| | | * [[IAS 39]] |
| For example in summary:
| | * [[Loan]] |
| <pre>
| | * [[Receivables]] |
| TOP HALF:
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| Assets 100 DR
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| - Liabilities (20) CR
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| = Net assets 80 DR | |
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| BOTTOM HALF:
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| Shareholders’ funds 80 CR
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| </pre>
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| (Total shareholders' funds being appropriately detailed in turn into share capital and reserves, as well as the individual assets and liabilities being appropriately listed in fuller detail.)
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| The balance sheet equation in summary using the convention above is 80 = 80.
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| 2.
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| There are many other ways to present this information in other balance sheet formats.
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| Alternative balance sheet conventions maintain the balanced/double-entry principle, but may show for example:
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| Total Assets = Total Liabilities + Shareholders' Funds.
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| Presented on this alternative (assets = liabilities) basis, using the same summary figures:
| | [[Category:Accounting,_tax_and_regulation]] |
| <pre>
| | [[Category:Long_term_funding]] |
| TOP HALF:
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| Total assets 100 DR
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| BOTTOM HALF:
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| Total liabilities 20 CR
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| + Shareholders’ funds 80 CR
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| = Total liabilities & shareholders’ funds 100 CR
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| </pre>
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| The same balance sheet information has now been presented as 100 = 100, using the alternative convention.
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| The Total liabilities of 20 CR are now presented in the bottom half of the balance sheet (rather than in the top half as before).
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| The choice of presentation will depend on the purposes for which the balance sheet information is required, together with any rules or conventions applying to the entity's external reporting.
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| == See also ==
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| * [[Assets]]
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| * [[Balance sheet exposure]]
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| * [[Cashflow statement]]
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| * [[Credit balance]]
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| * [[Current/non-current method]]
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| * [[Debit balance]]
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| * [[Double entry]]
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| * [[Event after the balance sheet date]]
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| * [[Financial statements]]
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| * [[Income statement]]
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| * [[Liabilities]]
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| * [[Off balance sheet]]
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| * [[Off-balance sheet finance]]
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| * [[Post balance sheet event]]
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| * [[Profit and Loss account]]
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| * [[Share capital]]
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| * [[Shareholders’ funds]]
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| * [[Short term]]
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| * [[Statement of financial position]]
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