The International Financial Reporting Standards (IFRS) and the International Accounting Standards Board (IASB) have formulated internationally accepted rules, standards, or procedures that are used by companies to prepare financial statements to record and report accounting information.
As per IAS 1 - Presentation of Financial Statements, every business entity is required to prepare a statement of financial position, also known as the balance sheet at the end of an accounting period along with the other fundamental financial statements. These include a profit and loss statement and cash flow statement.
Such financial statements provide useful information to both internal and external stakeholders regarding financial soundness, performance, and changes in the financial position of a business entity.
Thus, a simple balance sheet gives a true and fair view of your business’s financial position.
In this article, you will learn:
- What is a Balance Sheet?
- The Role of the Balance Sheet in Financial Statements
- Do I Need a Balance Sheet?
- How Does a Balance Sheet Work?
- How to Read a Balance Sheet
- Elements of a Balance Sheet
- Balance Sheet Equation
- The Balance Sheet Formula Example
- Balance Sheet Format
- Example of a Balance Sheet
- How To Create Balance Sheets For Your Small Business?
- Balance sheet report by QuickBooks
- Restore a Deleted Balance Sheet Account in QuickBooks