Accounting refers to the recording, valuation and presentation of assets, liabilities and equity in a Balance sheet. It is part of financial reporting and serves to depict a company's asset and financial situation on a specific reporting date.
What does Bilanzierung mean?
The Balance sheet process involves determining which assets and liabilities are to be recognised in a Balance sheet, at what value they are to be recognised, and under which Balance sheet item they are to be reported.
The Balance sheet represents a company's assets and capital structure on a specific Balance sheet reporting date.
Which elements belong to Bilanzing?
The fundamental areas of Bilanzing include in particular:
- Approach What assets and liabilities are recorded in the Balance sheet?
- Review: At what value are the individual items recorded?
- Identity card Under which Bilanz position are the values displayed?
- Update: How are changes in value taken into account up to the respective Bilanz reporting date?
For assets under non-current assets, information from, for example, the Asset accounting and changes in value due to Depreciation to be relevant.
Balance sheet and profit and loss statement – what's the difference?
The Balance sheet shows assets, liabilities and equity on a specific date. The Profit and Loss Statement on the other hand, records income and expenses within a specific period.
Both components are connected to each other, but fulfil different functions in Annual financial statements.
Connection with the Bookkeeping
The Bilanzisation is based on the transactions recorded in Bookkeeping and the resulting account balances. However, it is to be distinguished from the ongoing recording of individual transactions.
The Double-entry bookkeeping thus forming an important basis for the subsequent presentation of the assets and capital positions in the Balance sheet.
