What are Other Names for the Balance Sheet?
The balance sheet is a key financial statement in accounting that provides a snapshot of a company’s financial position at a specific point in time.
It shows what the company owns (assets), what it owes (liabilities), and the equity that belongs to the owners.
The balance sheet is also referred to by several other names:
Statement of Financial Position
One of the most commonly accepted alternative names for the balance sheet is the Statement of Financial Position.
This term is frequently used in international accounting standards (IFRS) and highlights the idea that the statement shows the financial position of a company.
Statement of Assets and Liabilities
Another common name for the balance sheet is the Statement of Assets and Liabilities.
This term focuses on the two main components of the balance sheet and is often used in non-profit organisations, where the emphasis may be on tracking assets and liabilities rather than presenting the equity position.
Statement of Financial Condition
In banking and financial services, the term Statement of Financial Condition is commonly used instead of “balance sheet.”
This term highlights the current financial health and condition of an organisation.
Why Are There So Many Names for the Balance Sheet?
The numerous names for the balance sheet is due to differences in accounting standards and regional preferences.
For example, U.S. GAAP (Generally Accepted Accounting Principles) commonly uses “balance sheet,” while IFRS prefers “Statement of Financial Position.”
Additionally, different industries, such as banking or non-profits, may use specific terms that better align with their financial reporting needs and stakeholder expectations.