The stability and financial stability of an enterprise depends on the results of its activities. For the timely detection and elimination of various shortcomings in the work, it is necessary to carry out a financial analysis. In this regard, analytical, structured reporting - balance sheet was created.
Balance building
The balance is called a two-sided table, the left side of which is an asset and reflects the composition and distribution of funds, and the right side is a liability, indicating the sources and purpose of these funds. Equality must be present in the balance sheet between the asset and the liability.
The main element of the balance sheet is a balance sheet item corresponding to a certain type of property, sources of its formation, liabilities. Items in the balance sheet are divided into aggregated, which have a decoding, and detailed, decrypting aggregated lines.
All balance sheet items are grouped into sections based on the economic content of the items. To simplify the search for articles, each line of the balance has a serial number and links to specific articles. The balance sheet provides two columns, reflecting the state of funds at the beginning and end of the reporting period. The second column displays their state at the time of drawing up the balance.
In the asset balance there are two sections - current and non-current assets. These sections are located depending on the growth of liquidity. The liability includes three sections - short-term, long-term liabilities, as well as capital and reserves. The sections of the liability are arranged according to the degree of consolidation of sources.
Balance elements
Any balance sheet of an enterprise is based on its three main components - assets, liabilities and equity.
Assets characterize property that generates income. It is understood that control over it was obtained by the organization as a result of the placement of attracted capital from outside on certain conditions.
Liabilities are debts incurred by the enterprise. These include loans, borrowings and other debts. Liabilities reflect the amount of funds to be repaid. It is assumed that this debt in the future will lead to a decrease in the resources of the organization.
Equity shows the assets that remain after deducting all liabilities. The receipt of profit by the enterprise increases this indicator, and losses - reduce it. This section includes share capital, reserve capital, treasury shares and retained earnings.
The balance sheet of the company is compiled on the basis of accounting rules established by the law "On accounting", regulations and other regulatory documents.
