Which positions belong in the assets of a balance sheet?
June 25, 2023 | 40,00 EUR | answered by Xenia Zellerbach
Dear tax advisor,
I recently prepared my balance sheet and I am unsure about which items exactly belong in the assets. In my balance sheet, I have already listed tangible assets, trade receivables, and cash and cash equivalents. However, I am wondering if there are other items that I should consider including to get a complete picture of my assets.
I am concerned that I may have forgotten important assets that belong in the assets and therefore my balance sheet is incomplete. Therefore, it would be very helpful for me if you could provide me with a detailed list of items that belong in the assets of a balance sheet.
Furthermore, I would like to know if there are any specific regulations or requirements that I need to consider when preparing the assets. Perhaps you also have tips or recommendations on how I can optimize and make my balance sheet more transparent.
Thank you in advance for your support and expertise.
Best regards,
Isabel Winterberg
Dear Mrs. Winterberg,
Thank you for your inquiry regarding the positions that belong in the assets of a balance sheet. I am happy to help you get a complete picture of your assets and make your balance sheet more transparent.
Generally, the assets of a balance sheet include all assets owned by the company that bring economic benefit. In addition to the positions already mentioned such as property, plant, and equipment, accounts receivable, and cash and cash equivalents, there are other assets that belong in the assets. These include:
- Inventory: This includes all goods and raw materials that the company keeps on hand for the production of products or provision of services.
- Financial assets: These are long-term investments in other companies, securities, and other financial instruments that are not classified as current assets.
- Other assets: These include, for example, prepayments, deferred tax assets, or services not yet billed.
It is important to consider all relevant assets in your balance sheet to get a realistic picture of your financial situation. Make sure that the positions are correctly valued to ensure a fair and realistic representation.
When preparing the assets, there are generally no specific rules or regulations beyond the general accounting principles. Make sure that the assets are sorted by liquidity, i.e. by the term within which the assets can be converted into cash.
To optimize your balance sheet and make it more transparent, I recommend regularly reviewing and adjusting your assets if necessary. Conduct a thorough inventory to ensure that all assets are accounted for. Use modern accounting software to keep track of your assets and facilitate the accounting process.
I hope this information is helpful to you. If you have any further questions, please feel free to contact me.
Sincerely,
Xenia Zellerbach, Tax Advisor
