Balance sheet structure

The structure of the balance of payments in the analysis reflects the composition of the property of the enterprise and its financial sources. From the point of view of management, analysis provides information through which the procurement and marketing policies of the company are characterized, the conditions for interaction of the enterprise with consumers and suppliers.

The balance sheet begins with a description of the total amount of the company's assets, as well as the dynamics of its changes over the period under review. As a result, in this part, sources of increase or reduction of assets should be identified, and articles, according to which changes occurred, should be identified.

The structure of the balance sheet, as already mentioned above, includes liabilities and assets. The ability to read a report is to know what is contained in each of its articles, how to evaluate information, what is the role of each article in the organization's activities, and how it relates to other provisions.

The structure of the balance sheet allows you to obtain a significant amount of information about the company, determine the level of the company's own circulating assets, determine which articles affected the change in the working capital, and give a preliminary assessment of the company's overall financial position.

The report document is a real means of communication. Thanks to him, company managers get an idea of their position in the system of such organizations, the correctness of their chosen strategic course, the effectiveness of the use of resources. In addition, the structure of the balance allows you to evaluate the effectiveness of decisions taken on a variety of management issues.

At the same time, analyzing the composition of the report, auditors are given the opportunity to plan their audit more clearly, to find the most effective approach in identifying weaknesses in the accounting system, as well as areas of possible unintended and deliberate errors in external reporting.

The balance structure allows analysts to determine the direction by which the financial analysis will be carried out.

The asset includes articles that combine specific components that make up the company's assets in accordance with the functional feature.

Depending on the period of application, assets are divided into permanent or non-current assets. These resources have been acquired for long-term use. They include fixed assets, financial investments for a long period, and so on.

In addition, assets may be current or negotiable. These resources are designed to be applied throughout the standard production cycle or a year.

In Russia, it is customary to build an asset in accordance with the increase in liquidity of funds, that is, in the order of increasing the rate at which assets become a cash form during the course of economic turnover.

Liabilities are presented in the form of own and borrowed capital. The first includes statutory and additional funds. The additional capital is the accumulated profit (distributed and undistributed). Borrowed funds are subdivided into long-term (more than a year) and short-term (less than one year) liabilities.

The balance sheet structure should correspond to the basic principle of accounting - the equality of liabilities and assets.

The analysis of the report document performs a number of important tasks. So, the balance allows you to assess the profitability of capital, financial stability, solvency of the enterprise. Together with this, the degree of efficiency of the company's funds allocation, their sufficiency for the implementation of current and future economic activities, as well as the size and composition of borrowed sources, and the effectiveness of their attraction are assessed.