LOS C requires us to:
describe alternative formats of balance sheet presentation.
Both IFRS and U.S. GAAP require the firms to prepare the classified balance sheet, giving details about the current and non-current assets and liabilities.
The firms, under IFRS, may also choose to present the assets and liabilities in the order of liquidity if such presentation is informative from the user’s point of view. This is called a liquidity-based format.
The basic format of the consolidated balance sheet is:
BALANCE SHEET AS AT |
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Particulars |
Notes |
Year ended |
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20XX |
20XX |
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ASSETS |
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Current Assets |
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Non-Current Assets |
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Total Assets |
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LIABILITIES |
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Current Liabilities |
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Non-Current Liabilities |
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Total Liabilities |
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EQUITY |
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Total Liabilities and Equity |
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The detailed format of the balance sheet as per IFRS is as follows:
BALANCE SHEET AS AT |
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Particulars |
Notes |
Year ended |
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20XX |
20XX |
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NON-CURRENT ASSETS |
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Property, plant and equipment and Investment Property |
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Goodwill |
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Advances for Capital Assets |
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Intangible assets |
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Investments |
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Investments in associates |
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Available for sale investments |
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Receivables and other non-current Assets |
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Deferred tax assets |
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TOTAL NON-CURRENT ASSETS |
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– |
– |
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CURRENT ASSETS |
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Inventories |
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Trade receivables |
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Other current assets |
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Income tax assets |
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Investments and financial receivables |
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Cash and cash equivalents |
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TOTAL CURRENT ASSETS |
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– |
– |
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TOTAL ASSETS |
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– |
– |
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SHAREHOLDERS’ EQUITY |
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Share capital |
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Reserves |
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Retained earnings |
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TOTAL SHAREHOLDERS’ EQUITY |
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– |
– |
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NON-CURRENT LIABILITIES |
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Interest-bearing loans and short term borrowings |
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Employee benefits liabilities |
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Provisions |
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Deferred tax liabilities |
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TOTAL NON-CURRENT LIABILITIES |
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– |
– |
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CURRENT LIABILITIES |
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Banks overdrafts and short-term borrowings |
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Interest-bearing loans and short term borrowings |
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Trade payables |
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Provisions |
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Income tax liabilities |
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Other liabilities |
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TOTAL CURRENT LIABILITIES |
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– |
– |
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TOTAL LIABILITIES |
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– |
– |
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TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES |
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– |
– |
As per the liquidity based format, where the assets and liabilities would be presented in the order of liquidity, the balance sheet would be prepared as follows:
BALANCE SHEET AS AT |
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Particulars |
Notes |
Year ended |
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20XX |
20XX |
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ASSETS Cash and deposits with central banks |
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Deposits with banks and non-bank financial institutions |
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Precious metals |
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Placements with banks and non-bank financial institutions |
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Financial assets at fair value through profit or loss |
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Positive fair value of derivatives |
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Financial assets held under resale agreements |
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Interest receivable |
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Loans and advances to customers |
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Available-for-sale financial assets |
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Held-to-maturity investments |
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Debt securities classified as receivables |
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Interests in associates and jointly controlled entities |
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Fixed assets |
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Land use rights |
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Intangible assets |
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Goodwill |
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Deferred tax assets |
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Other assets |
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Total assets |
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– |
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SHAREHOLDERS’ EQUITY |
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Share capital |
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Reserves |
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Retained earnings |
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TOTAL SHAREHOLDERS’ EQUITY |
– |
– |
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LIABILITIES |
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Trade payables |
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Banks overdrafts and short-term borrowings |
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Interest-bearing loans and short term borrowings |
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Income tax liabilities |
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Provisions |
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Other liabilities |
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Deferred tax liabilities |
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Employee benefits liabilities |
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Provisions |
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TOTAL LIABILITIES |
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TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES |
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– |
– |