Accounting Balance Sheet
In this video, Saket breaks down the different categories of the balance sheet including assets, liabilities and equity. He also outlines two different ways of presenting the balance sheet, the 'current and non-current' presentation, and the 'liquidity' presentation, and when it is appropriate to use each of them.
Overview
A balance sheet or statement of financial position provides a snapshot of the sources of funds and investments of an entity, as at a particular date. The elements of a balance sheet are assets, liabilities and equity and these elements form the fundamental accounting equation: Assets = Liabilities + Equity. The assets and liabilities may be presented on the balance sheet in current/non-current format or in the order of liquidity.
Key learning objectives:
What are the different categories of items on the balance sheet?
Explain the current and non-current classification of assets and liabilities on the balance sheet.
When are the assets and liabilities presented in the order of liquidity?
Summary
Expert
Saket Modi
Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.
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