5.3 Planned balance sheet / annual financial statement

5.3.2 Balance sheet

The annual balance sheet shows the value of the enterprise. Capital and assets are expressions of the totality of operational values. They are always equal in size. This is shown arithmetically in the balance sheet, where capital represents the totality of the items on the liabilities side and assets the totality of the items on the assets side.

Structure of the balance sheet

ASSETS - Use of funds

(The assets or asset side shows the forms of the assets)

LIABILITIES - Source of funds

(The capital or liability side shows the origin of the assets)

Fixed assets:

- Property, plant and equipment LandMachineryFurnishingsPlant and equipment

- Financial assets
InvestmentsSecurities

- Intangible assets PatentsLicencesConcessions

Current assets:

- Current assetsMaterials and supplies

- Current financial assets
Cash
,
receivables,
cash on hand,
credit balances, bills of exchange
and chequesOther
assets

- Accruals and deferrals

Share capital

- Equity
capital - debt capital

Reserves-
statutory reserves-
free reserves

Value adjustments

Provisions- pension provisions-
other provisions

Liabilities-
Bonds-
to credit institutions-
to shareholders- to
others

Liabilities- from
deliveries-
from bills- from
payments received-
to affiliated
companies-
other liabilities

- Accruals and deferrals

Accumulated loss

Balance sheet profit

The balance sheet approach assumes that all financing transactions are reflected in the balance sheet. In business terms, the balance sheet is the comparison of the assets on the assets side and the capital on the liabilities side at a certain point in time. Over the course of several years, the balance sheet changes on the assets and liabilities side can be evaluated well.

The asset side of the balance sheet shows the investment of assets. It provides information about the financial resources in the form of fixed and current assets. The liabilities side of the balance sheet provides information on the origin of the capital. It shows the source of funds of the equity capital and borrowed capital in the form of liabilities or also provisions.

Example of a balance sheet:

Balance sheet: Assets Use of funds	Euro	Balance sheet: Liabilities Source of funds	Euro
I. Fixed assets		I. Equity	380.000
1. land	280.000	II. debt capital
2. building	350.000	1. mortgage debt	320.000
3. vehicle fleet (company car)	150.000	2. loan debts	280.000
4. office and business equipment	90.000	3. liabilities from deliveries and services	35.000
II. current assets		4. provisions	20.000
1. stocks of goods	80.000
2. trade receivables	37.000
3. cash desk	3.000
4. bench	45.000
Total	1.035.000	Total	1.035.000