Financial Accounting for Managers, 2/e, 2nd Edition

5

Balance Sheet

CHAPTER OBJECTIVES

This chapter will help the readers to:

• Understand the contents of balance sheet in depth.
• Differentiate between equity and liabilities, current liabilities and non-current liabilities, current assets and non- current assets.
• Appreciate the issues involved in valuation of assets and liabilities in the balance sheet.
• Appreciate the impact of relevant accounting standards on the balance sheet—AS 12 (accounting for government grants), AS 13 (accounting for investments), AS 19 (Leases), AS 22 (Taxes), AS 29 (provisions, contingent liabilities and contingent assets).

The balance sheet in simple terms is a statement of assets and liabilities of a business enterprise on a particular day. It is prepared on the last ...