Examples of Balance Sheet

The following balance sheet example outlines the most common Balance Sheets of US, UK, and Indian GAAP. It is impossible to provide a complete set that addresses every variation in every situation since there are thousands of such Balance Sheets. Each Balance Sheet example states the topic, the relevant reasons, and additional comments as needed.

A balance sheetA Balance SheetA balance sheet is one of the financial statements of a company that presents the shareholders’ equity, liabilities, and assets of the company at a specific point in time. It is based on the accounting equation that states that the sum of the total liabilities and the owner’s capital equals the total assets of the company.read more is a statement that shows the organization’s financial position on any specified date with two sides, the asset and liability sides. The asset side shows Non-current AssetsNon-current AssetsNon-current assets are long-term assets bought to use in the business, and their benefits are likely to accrue for many years. These Assets reveal information about the company’s investing activities and can be tangible or intangible. Examples include property, plant, equipment, land & building, bonds and stocks, patents, trademark.read more and Current Assets. The liability side shows the Owner’s Capital and Current and Non-Current Liability.

Based on the industrial and nationwide requirements, various rules prescribed by the International Accounting Standard Board (IASB) are formally termed International Financial Reporting Standard (IFRS). Based on their tradition and industrial specification, all nations adopt IFRS and modify it to draft their local Generally Accepted Accounting Principles(GAAP).

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Balance Sheet Examples based on US GAAP

In the USA, US local GAAPGAAPGAAP (Generally Accepted Accounting Principles) are standardized guidelines for accounting and financial reporting.read more is accepted for preparing financial statements. So let’s understand the balance sheet in the USA with an example of two companies existing in the real world:

#1 – Example of Walmart, Inc.

source: Walmart SEC Filings

  • Current AssetsCurrent AssetsCurrent assets refer to those short-term assets which can be efficiently utilized for business operations, sold for immediate cash or liquidated within a year. It comprises inventory, cash, cash equivalents, marketable securities, accounts receivable, etc.read more – 59664,Property Plant & Equipment(PPE) net of Depreciation- 107,675,Lease receivables- 7,143,GoodwillGoodwillIn accounting, goodwill is an intangible asset that is generated when one company purchases another company for a price that is greater than the sum of the company’s net identifiable assets at the time of acquisition. It is determined by subtracting the fair value of the company’s net identifiable assets from the total purchase price.read more – 59664,Property Plant & Equipment(PPE) net of Depreciation- 107,675,Lease receivables- 7,143,GoodwillGoodwillIn accounting, goodwill is an intangible asset that is generated when one company purchases another company for a price that is greater than the sum of the company’s net identifiable assets at the time of acquisition. It is determined by subtracting the fair value of the company’s net identifiable assets from the total purchase price.read more – 18,242,Other assets- 11,798.

Equity Capital

  • Share CapitalShare CapitalShare capital refers to the funds raised by an organization by issuing the company’s initial public offerings, common shares or preference stocks to the public. It appears as the owner’s or shareholders’ equity on the corporate balance sheet’s liability side.read more– 295,Reserves-87,755,Other OCI Loss-(10,181),Non-Controlling Interest- 2,953

Long Term Liabilities

  • Current LiabilitiesCurrent LiabilitiesCurrent Liabilities are the payables which are likely to settled within twelve months of reporting. They’re usually salaries payable, expense payable, short term loans etc.read more -78,521,Long term Debts- 30,045,Lease obligations-6780,Deferred Income taxDeferred Income TaxDeferred income tax is a balance sheet item that can be either a liability or an asset since it is a difference in income recognition between the firm’s accounting records and the tax law, resulting in the company’s income tax due being different than the total tax expense reported.read more & others-8,354

Along with the above data, comparable to last year for the same period is also needed to be disclosed;

#2 – Example of Apple, Inc.

source: Apple SEC Filings

  • Current Assets- 130053,Property Plant & Equipment(PPE) net of Depreciation- 35,077,Long term marketable securitiesMarketable SecuritiesMarketable securities are liquid assets that can be converted into cash quickly and are classified as current assets on a company’s balance sheet. Commercial Paper, Treasury notes, and other money market instruments are included in it.read more – 179,286,Goodwill-, Other assets- 23,086.

  • Share Capital- 38044,Reserves- 91,898,Other OCI Loss-(3,064),Non-Controlling Interest- Nil

  • Current Liabilities-89320,Long term DebtsLong Term DebtsLong-term debt is the debt taken by the company that gets due or is payable after one year on the date of the balance sheet. It is recorded on the liabilities side of the company’s balance sheet as the non-current liability.read more– 10,1362,Lease obligations-46855,Deferred Income tax LiabilityDeferred Income Tax LiabilityDeferred tax liabilities arise to the company due to the timing difference between the accrual of the tax and the date when the company pays the taxes to the tax authorities. This is because taxes get due in one accounting period but are not paid in that period.read more & others-3087

Major financials are prepared under the US GAAP and in the format published by SEC for their annual filing in the USA. The main aim behind the standardization of such a process is the comparability and proper disclosure of the facts for investors.

One should note that one must prepare a comparison for last year under the said accounting policiesAccounting PoliciesAccounting policies refer to the framework or procedure followed by the management for bookkeeping and preparation of the financial statements. It involves accounting methods and practices determined at the corporate level.read more, assumptions, methods, and approaches in which financials of current years are prepared.

Balance Sheet Example based on UK GAAP

Firms in the United Kingdom are compulsorily required to prepare financials as per the local UK and Irish GAAP. Also, based on the development at the global level, UK and Irish GAAP are blended into the IFRS for the global reporting perspectives.

Let’s understand the same by viewing the balance sheets of some existing companies:

#1 – Example of Vodafone Group PLC

source: Vodafone Annual Report

  • Current Assets- 37,951,Property Plant & Equipment(PPE) net of Depreciation- 28,325,Investments– 5,742,Deferred Tax AssetsDeferred Tax AssetsA deferred tax asset is an asset to the Company that usually arises when either the Company has overpaid taxes or paid advance tax. Such taxes are recorded as an asset on the balance sheet and are eventually paid back to the Company or deducted from future taxes.read more– 26,200,Goodwill- 43,257,Other assets-4,136

  • Share Capital- 154,993,Treasury SharesTreasury SharesTreasury Stock is a stock repurchased by the issuance Company from its current shareholders that remains non-retired. Moreover, it is not considered while calculating the Company’s Earnings Per Share or dividends. read more – (8,463),Accumulated losses- (106,695),Other OCI Loss- 27,805,Non-Controlling Interest- 967

  • Current Liabilities-28,025,Long term Debts-37,980

#2 – Example of BP PLC

source: BP Annual Report

  • Current Assets-74,968,Property Plant & Equipment(PPE) net of Depreciation- 129,471,Investments– 24,985,Deferred Tax Assets- 4,469,Intangibles – 29,906,Other assets- 12,716.

  • Share Capital- 5,343,Share PremiumShare PremiumShare premium is the difference between the issue price and the par value of the stock and is also known as securities premium. The shares are said to be issued at a premium when the issue price of the share is greater than its face value or par value. This premium is then credited to the share premium account of the company.read more Account- 12,147Capital Redemption Reserve- 1,426,Merger Reserve-27,206Treasury Shares – -16,958,Non-Controlling Interest- 1,913

  • Current Liabilities-64,726,Non-Current Liabilities-11,385,

Along with the above data, comparable to last year for the same period also needs to be disclosed.

In the UK, financial statements must be submitted to the Financial Conduct Authority annually in XBRL format. Chartered accountants of ICAEW must audit and certify it and then submit the same.

Balance Sheet Examples based on Indian GAAP

In India, financials are to be presented by considering Indian GAAP and acceptable IFRS in line with the global reporting framework. Until 2019, IFRS 15 (Revenue from Contracts with Customers) and IFRS 9 (Financial Instruments) are fully implemented. In this line, other IFRS will also be implemented with specific carve out as per the Indian scenario.

Schedule 3 of the Companies Act 2013 provides the Balance Sheet format, under which all the Indian companies are needed to prepare their financial statements annuallyFinancial Statements AnnuallyAnnual Financial Statements refers to the annual presentation of the entity’s financial performance comprising a Balance Sheet, statement of profit and loss, statement of changes in equity, cash flow statement, and notes to the financial statements. It provides information to the stakeholders for making financial decisions about the business.read more and quarterly.

Let’s understand the said format by taking a real example from the existing company:

Example of Reliance

source: Reliance Annual Report

  • Current Assets-183,786,Property Plant & Equipment(PPE) net of Depreciation- 316,031,Capital Work in Progress– 166,220,Deferred Tax Assets- 5,075,Intangibles – 87,854,Other assets- 57,382

  • Share Capital- 5,922,Other Reserves- 287,584,Non-Controlling Interest- 3,539

  • Current Liabilities- 313,852,Non-Current Liabilities- 205,451.

The above data comparable to last year for the same period also needs to be disclosed.

In India, complete financial statements consist of the Balance Sheet, Income Statement, Cash flow statementCash Flow StatementA Statement of Cash Flow is an accounting document that tracks the incoming and outgoing cash and cash equivalents from a business.read more, Changes in Equity, and Statement of Other Comprehensive Income. Financial statements must be submitted to the Ministry of Corporate Affairs annually in September.

Conclusion

The balance sheet is the financial position statement that shows the company’s oThe balance sheet is the financial position statement that shows the company’s obligations and receivables. It is a base statement that is considered for all kinds of analysis and to determine the solvency of the companySolvency Of The CompanySolvency of a company means its ability to meet the long term financial commitments, continue its operation in the foreseeable future and achieve long term growth. It indicates that the entity will conduct its business with ease.read more. All the experts rely on the balance sheet provided by the company. Hence the balance sheet needs to be reliable, correctly valued, with proper assumptions, and overall, must be prepared by the trusted personnel so that marketers can rely on the same.

It is a Guide to Balance Sheet Examples. Here we provide practical Balance Sheet Examples of companies following US GAAP, UK GAAP, and Indian GAAP. You can learn more about Accounting from the following articles –

  • Balance Sheet RatiosBalance Sheet EquationClassified Balance SheetBalance Sheet Formula