Balance sheet and PKI: Difference between pages

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(BS). 
Public Key Infrastructure.
 
 
== What is a balance sheet? ==
 
 
One of the primary statements of a reporting entity's financial accounts. 
 
Also known as the Statement of financial position.
 
 
The balance sheet lists the assets, liabilities and shareholders’ funds at the balance sheet date.
 
Under the 'double entry' accounting convention, assets are Debits (DR) and liabilities and shareholders' funds are Credits (CR).
 
The standard UK balance sheet presentation for external reporting is Net Assets = Shareholders' Funds.
 
The Net assets part of the balance sheet is sometimes called the 'top half'.
The Shareholders' funds part being the 'bottom half'.
 
For example in summary:
 
 
TOP HALF:
 
Assets 100  DR
 
- Liabilities (20) CR
 
= Net assets   80  DR
 
 
BOTTOM HALF:
 
Shareholders’ funds 80  CR
 
 
(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.)
 
The balance sheet equation in summary using the convention above is 80 = 80.
 
 
 
== Alternative presentations of balance sheets ==
 
 
There are many other ways to present this information in other balance sheet formats.
Alternative balance sheet conventions maintain the balanced/double-entry principle, but may show for example:
 
Total Assets = Total Liabilities + Shareholders' Funds.
 
Presented on this alternative (assets = liabilities) basis, using the same summary figures:
 
 
TOP HALF:
 
Total assets   100 DR
 
 
BOTTOM HALF:
 
Total liabilities   20 CR
 
+ Shareholders’ funds     80 CR
 
= Total liabilities & shareholders’ funds 100 CR
 
 
The same balance sheet information has now been presented as 100 = 100, using the alternative convention.
 
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).
 
 
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.




== See also ==
== See also ==
* [[Assets]]
* [[Public key infrastructure]]
* [[Balance sheet exposure]]
* [[Cashflow statement]]
* [[Credit balance]]
* [[Current/non-current method]]
* [[Debit balance]]
* [[Double entry]]
* [[Event after the balance sheet date]]
* [[Financial statements]]
* [[Income statement]]
* [[Liabilities]]
* [[Off balance sheet]]
* [[Off balance sheet finance]]
* [[Post balance sheet event]]
* [[Profit and Loss account]]
* [[Share capital]]
* [[Shareholders’ funds]]
* [[Short term]]
* [[Statement of financial position]]
* [[CertICM]]
 
 
===Other links===
[http://www.treasurers.org/node/5176 Is your balance sheet sound? The Treasurer, 2009]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]
[[Category:Technology]]

Latest revision as of 14:52, 26 June 2022

Public Key Infrastructure.


See also