1. Equity
1.1. It is the residual value of the entity;s assets, after deducting all its liabilities,
1.1.1. Classified in
1.1.1.1. Share Capital
1.1.1.1.1. Made up of contributions from the entity's owners. It also includes contributions for future capital increases.
1.1.1.2. Retained Earnings
1.1.1.2.1. Made up of accumulated comprehensive income.
2. Liabilities
2.1. Present obligation of an entity (company) identified and quantified in monetary terms that represent a decrease in economic resources derived from operations occured in the past. = debts
2.1.1. Classified in
2.1.1.1. Current Liabilities
2.1.1.1.1. Short-term financial obligations that are due within one year.
2.1.1.2. Noncurrent Liabilities
2.1.1.2.1. Long-term financial obligations
3. Presentation
3.1. Header
3.1.1. Includes: Name of Comapny, Type of Statement to follow, Date.
3.2. Body
3.2.1. Presented in Report form or Account form
3.3. Footer
3.3.1. Name and Signature of the accountant who produec the financial statement.
3.3.1.1. Approval: Name and Signature of who approved the financial statement.
3.3.1.1.1. Includes: Full Name, Position in the company
4. Defenition/Purpose
4.1. Shows the financial position of a business and it is present at a given date. A balnace sheet is a summary of all your business assets (what the business owns) and liabilities (what the business owes).
4.1.1. Equation used
4.1.1.1. Assets = Liabilities + Equity
5. Assets
5.1. Classified in
5.1.1. Current Assets
5.1.1.1. Assets of the company expected to sold consumed or used through operations within one year.
5.1.1.1.1. Ex. Cash, Bank Acounts, Inventory
5.1.2. Noncurrent Assets
5.1.2.1. Long term assets, they can be represented as an investment, commonly known as fixed assets.
5.1.2.1.1. Ex. Properties(building), equipment, intangible assets (patents or trademarks)
5.1.3. Other Assets
5.1.3.1. Minor Assets that don't naturally fit in the main categories.
5.1.3.1.1. Ex. Deferred taxes, guarantee deposits