The balance sheet of an enterprise is an ordered grouping of assets and sources of their formation (liabilities) in monetary value at a certain date. This is one of the main forms of reporting by an organization. Balance indicators characterize the financial position of the enterprise. The formation of this document is a rather lengthy and complex process that requires a large list of accounting works.
Instructions
Step 1
Before drawing up a balance sheet, organizations carry out preparatory work, which includes an inventory of property and liabilities and clarifying account balances, adjusting the value of assets and liabilities, creating funds and reserves, identifying the final financial result, drawing up a turnover sheet, including all corrective entries. All these procedures are carried out when forming the annual balance sheet. The rest of the balances are compiled on the basis of book accounting data.
Step 2
The procedure for drawing up the balance is strictly regulated. If there are no indicators for its individual articles or for articles of other forms of financial reporting, then the corresponding lines are crossed out. In the form of a balance sheet developed by the organization itself, such lines may be excluded altogether.
Step 3
If the indicators of income, expenses, assets, liabilities or business transactions are significant, and without them it is impossible to correctly assess the financial condition of the organization, then they are given separately. If each of the indicators individually is not material and cannot influence the opinion of interested users of the financial statements, then they can be presented as a total. But at the same time, their disclosure should be included in the explanations to the balance sheet.
Step 4
When compiling the balance sheet, it must be remembered that the information specified in it at the beginning of the year must correspond to the data at the end of last year. The reporting date for drawing up the balance is the last calendar day of the reporting period. All items of the balance sheet must be confirmed by inventory data of property, liabilities and calculations.
Step 5
In the balance sheet of the organization, assets and liabilities are reflected in accordance with the maturity (maturity): short-term and long-term. Short-term assets and liabilities include those whose maturity does not exceed 12 months from the reporting date. The rest of the assets and liabilities are considered to be long-term.
Step 6
The balance sheet is compiled on the basis of the data of accounting registers: turnover sheet, order journals, auxiliary sheets. They, in turn, serve to form the general ledger. The turnovers indicated in it represent the indicators of the company's balance sheet.
