Balance Sheet
FinanceDefinition
A financial statement that presents a company's financial position by listing its assets, liabilities, and equity at a specific point in time.
Detailed Description
The balance sheet, also known as the statement of financial position, is a fundamental component of a company's financial statements. It provides a snapshot of a company's financial status at a particular point in time, detailing its assets, liabilities, and shareholders' equity. The balance sheet follows the accounting equation, where assets equal liabilities plus equity, highlighting the resources of the business and how they are financed.
Key Features
- Follows accounting equation: Assets = Liabilities + Equity
- Includes current and long-term liabilities
- Lists current and long-term assets
- Provides a snapshot of financial health
- Shows shareholders'''' equity
Common Modules
Asset Management
Focuses on tracking and managing a company's assets efficiently.
Financial Management
Central module in ERP that handles accounting, financial reporting, budgeting, and compliance.
Popular Implementations
Oracle Financials Balance Sheet Setup
Oracle provides configurable templates to generate balance sheets as part of its Financials Cloud solutions.
SAP Balance Sheet Implementation
Implementation of balance sheets in SAP involves setting up financial accounting modules to categorize and track the financial data systematically.