Guidelines for balance sheets of public business entities are given by the
International Accounting Standards Board through
International Financial Reporting Standards and numerous country-specific organizations/companies. The standard used by companies in the US adheres to
U.S. Generally Accepted Accounting Principles (GAAP). The
Federal Accounting Standards Advisory Board (FASAB) is a United States federal advisory committee whose mission is to develop generally accepted accounting principles (GAAP) for federal financial reporting entities. Balance sheet account names and usage depend on the organization's country and the type of organization. Government organizations do not generally follow standards established for individuals or businesses. If applicable to the business, summary values for the following items should be included in the balance sheet: Assets are all the things the business owns. This will include property, tools, vehicles, furniture, machinery, and so on.
Assets Current assets •
Cash and cash equivalents •
Accounts receivable •
Inventories •
Prepaid expenses for future services that will be used within a year •
Notes receivable Non-current assets (
Fixed assets) •
Property, plant and equipment • Investment property, such as
real estate held for investment purposes •
Intangible assets, such as patents, copyrights and goodwill • Financial assets (excluding investments accounted for using the equity method,
accounts receivables, and cash and
cash equivalents), such as
notes receivables •
Investments accounted for using the
equity method • Biological assets, which are living plants or animals. Bearer biological assets are plants or animals which bear agricultural produce for harvest, such as apple trees grown to produce apples and sheep raised to produce wool. • Loan To (More than one financial period)
Liabilities •
Accounts payable •
Provisions for warranties or court decisions (contingent liabilities that are both probable and measurable) • Financial liabilities (excluding provisions and
accounts payables), such as
promissory notes and
corporate bonds • Liabilities and assets for current
tax •
Deferred tax liabilities and deferred tax assets • Unearned revenue for services paid for by customers but not yet provided • Interests on loan stock • Creditors' equity
Net current assets Net current assets means current
assets minus current liabilities.
Equity / capital The net
assets shown by the balance sheet equals the third part of the balance sheet, which is known as the
shareholders' equity. It comprises: • Issued capital and
reserves attributable to equity holders of the
parent company (controlling interest) •
Non-controlling interest in equity Formally, shareholders' equity is part of the company's liabilities: they are funds "owing" to
shareholders (after payment of all other liabilities); usually, however, "liabilities" are used in the more restrictive sense of liabilities excluding shareholders' equity. The balance of assets and liabilities (including shareholders' equity) is not a coincidence. Records of the values of each account in the balance sheet are maintained using a system of accounting known as
double-entry bookkeeping. In this sense, shareholders' equity by construction must equal assets minus liabilities, and thus the shareholders' equity is considered to be a residual. Regarding the items in the equity section, the following disclosures are required: • Numbers of
shares authorized, issued and fully-paid, and issued but not fully paid •
Par value of shares • Reconciliation of shares outstanding at the beginning and the end of the period • Description of rights, preferences, and restrictions of shares •
Treasury shares, including shares held by
subsidiaries and associates • Shares reserved for issuance under
options and
contracts • A description of the nature and purpose of each reserve within owners' equity ==Substantiation==