Balance sheet is critical reports in how to create financial statements business. However quite difficult for small business owners, accountants when approached with this report because there are too many items hassle, the item mean, why be listed in this report? The AccNet find out in detail to understand the whole picture of reports on this important and reference balance sheet Excel at the end of the article
1. Balance sheet what is it?
Balance sheet is the synthesis report aims to reflect general the entire value of existing assets and resources form the assets of the business at a certain time. The time the balance sheet is usually the end of the month, end of quarter or end of the year.
1.1 meaning balance sheet
Based on the balance sheet, the business has angle overview of the financial situation of the company to take out the financial decisions right. It has meaning both legally and economically.
- Meaning legally: The property presents the value of existing assets of the business can be managed and used for production and business. The funds can is the responsibility and obligation of the business related to total business capital with the creditors and owners.
- Sense economically: The property allows investors overall assessment of the scale and structure of the assets of the company. The capital reflects the sources of formation of property to assess the financial situation of the company.
1.2 balance Sheet detail reflects what?
Balance sheet reflect the real financial situation of the business through existing assets and capital assets of the business.
The balance sheet using the method of synthetic balance to express the company's assets at certain times. The criteria in the balance sheet reflects the assets, business, according to two aspects are property and capital.
- The property reflects the property as a capital structure of business.
- The capital reflects the property as source of capital formation and business of the business.
The administrator or investors can rate, review is the real financial situation of the business, such as the potential or risk to be able to make a decision the right investment.
1.3 structure of the balance sheet details
A balance sheet complete will reflect the value property business in 2 angles: structural capital and business capital formation capital business. Specifically, it is divided into 2 main parts: Assets (Part I), capital (Part II).
About the layout, the information in the table can be arranged at 2 ways:
- Vertical: The only negative Part I will be presented in front of, next will be the norm under Part II.
- Horizontally: The only goal of part I and Part II will be presented in parallel with each other.
About the order presented:
- Part I: short-term Assets > current Assets - the only goal will be arranged according to the bar about tapered.
- Part II: capital liabilities > owner's equity - the targets are arranged from top to bottom according to the time limit for payment of debts.
2. The balance sheet accounting details based on any principles?
In accordance with article 112 Circular no. 200/2014/TT-BTC instructions how to set up and presentation balance sheet regulations on the principles set as follows:
2.1 principles of business for continuous operation
For enterprises with the business cycle in the last 12 months, the account assets and liabilities are classified, short-term and long-term according to the following principles:
- Assets and liabilities are recovered or paid within 12 months from the reporting date are classified short-term.
- Assets and liabilities are recovered or paid after 12 months from the reporting date are classified long-term.
For companies that have business cycles over 12 months, assets and liabilities are classified, short-term and long-term according to the principle:
- Assets and liabilities are recovered or paid within the business cycle are classified short-term.
- Assets and liabilities are recovered or paid in a long time over the business cycle are classified as long-term.
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2.2 principle applies to business, not continuous operation
Presenting the item in balance sheet details when the business does not operate continuously presented like the balance sheet of the business, in addition to the following adjustments:
- Non-classified short-term or long-term: The only goal in the balance sheet is not based on the remaining term from the date of reporting.
- No provisions have been recorded for all assets and liabilities are determined net worth can be realized value may revoke or fair value.
Some items other than the balance sheet for business in continuous operation as follows:
- The item “securities trading” (121): Reflects the carrying value of trading securities after the revaluation.
- Items related to investments in subsidiaries, joint ventures and investments in other companies are reported under the carrying value after revaluation of the investments mentioned above. The business is not required to report the “reserve financial investment long term,” due to reserves are recorded directly reduced the carrying value of the investment.
- Items related to accounts receivable are recorded at the carrying value after revaluation of the accounts receivable. Business is not recorded account “provision for doubtful” because the room is directly reduced the carrying value of receivables.
- The item “inventory” (140): Could show the carrying value of inventory after the revaluation. This metric is the cost of production, business, equipment, supplies, and spare parts are classified long-term on balance sheet standard for business operation continuity. Businesses do not need to present items “ provision for decline in value of inventories” because of the provision is recorded directly on the carrying value of inventory.
- The account related to fixed assets, tangible and intangible, real estate investment, fixed assets finance lease is reported as the carrying value after revaluation of the property on. The unit does not need to recognize the item “original price” because the carrying value is the value to be reassessed and item “Price worn depreciation accumulated” need not recorded because of depreciation is recorded directly to the book value of the business.
The other item is presented by the gross number of material and content of the norm in the short term and long term of business operation continuity.
3. How to set up the balance sheet accounting standard circular 200
To perform accurate accounting profession in general and balance sheet in particular, accountants have to “lying heart” the steps the balance sheet as well as apply the template table circular 200 of the Ministry of finance.
3.1 The steps of the accounting standard
To help accountants or business create balance sheet simple and easy, here are the steps of the best standard.
- Step 1: Check and verify the economic
- Step 2: Lock ledger and comparison ledger with the window related
- Step 3: Proceed with implementation of the intermediate shift and lock completely the ledger
- Step 4: Establishment the balance sheet of arise
- Step 5: conduct of balance sheet
- Step 6: review and approve
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3.2 form balance sheet
| Unit reports:...................... |
Model number B 01 – DN |
| Address:............................... |
(Issued under circular no. 200/2014/TT-BTC Date 22/12/2014 of the Ministry of Finance) |
BALANCE SHEET
At day ... month ... year ...(1)
(Applicable for business responsive assuming continuous operation)
Unit:.............
| PROPERTY | Code | Notes | The last number of years (3) | Beginning balance (3) |
|
1 |
2 | 3 | 4 |
5 |
| A - SHORT-TERM ASSETS |
100 |
|||
| B - LONG-TERM ASSETS |
200 |
|||
| TOTAL ASSETS (270 = 100 + 200) |
270 |
|||
| C - LIABILITIES |
300 |
|||
| D - EQUITY |
400 |
|||
| TOTAL CAPITAL RESOURCES (440 = 300 + 400) |
440 |
Days ... months ... years ...
| Table of contents |
Chief accountant |
Director |
(Signature, name)
|
(Signature, name) |
(Signature, name and seal) |
Download template balance sheet for enterprise continuous operation under circular no. 200/2014/TT-BTC
Download template balance sheet for business activities not constantly under circular no. 200/2014/TT-BTC
4. Explain in detail the meaning of the elements in the report balance sheet
Content in balance sheet the standard consists of 2 main parts: part total assets and total capital, each element will have a way of expression and its own meaning.
4.1 Total assets
The total assets in balance sheet reflect the full value of the existing assets of the business at the time of the report. Includes short-term assets and long-term assets
- Short-term assets: the total value of cash, cash equivalents and other current assets can be converted into cash in the short term (the term in the last 12 months or the operating cycle of business since the date of the report)
- Long-term assets: Assets are the payment term on 12 months from the time of the report. For example: fixed Assets, investment real estate, accounts receivable, long-term...
4.2 capital
In balance sheetcapital reflects the source form current assets of the business at the time of the report. The only objective source of capital can current liabilities of the business with respect to assets under management. Includes liabilities and owner's equity.
- Liabilities: Is the total value of the debts of the business, including liabilities short term and long term liabilities.
Short-term debt: Reflects the total value of the debt in unit payment term not exceeding 12 months or in the business cycle normal. For example: The account to pay the seller (money purchase goods, materials,...), the accounts payable employee, financial loans, short-term accounts payable to The state,...
Long-term debt: Total value of the debts of the business are the payment term from 12 months and up or on a cycle of business activity since the reporting date. For example: loans and debt long-term lease, accounts payable other long-term,...
- Equity: Reflects the total amount of capital of the business to the time of reporting. Include equity and other funds, for example, Funds obtained from profit after tax and profit after tax has not distributed, the Money invested by business owners, the difference property valuation,...
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5. The balance sheet of Vinamilk - Template reference
Below is a sample balance sheet Excel year of the company, Vinamilk.
Download form balance sheet Excel here:
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Hope the useful knowledge on can help Businesses understand more detail about the concept and the meaning of balance sheet as well as how to set up the balance sheet properly according to law. In the process, refer to the article have questions, any questions please leave below comments or contact AccNet via the hotline 0901 555 063 for advice on the best accounting software today and to answer any questions you okay.
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