What is aggregate balance? Examples

For financial analysis the state of the organization uses the data of financial statements, in particular the balance sheet. In order to simplify the counting processes, articles identical in economic content are combined into one. Aggregated balance is easier to read and analyze.

Essence

The aggregated balance of the enterprise allows you to determine the elements that characterize the state of the company. In its form, it resembles reports that are used in international practice. Correctly combined balance is the key to quality financial analysis. Report articles can be used to calculate liquidity indicators turnover, sustainability, etc.

When an aggregated balance is drawn up, the main sections are retained (intangible assets, fixed assets, insurance companies, borrowed capital), but transformations occur within each of them. Asset lines are grouped by the principle of liquidity (ability to quickly turn into cash), liabilities by maturity. There is no clear instruction on how the aggregated balance sheet is compiled. The main rule is to adhere to the principle of economic feasibility.

Fixed assets

Accounts receivable (DZ) to counterparties with a maturity of more than 12 months are included in Section II of the balance sheet. In Russian practice, this often includes amounts to be written off. From an economic point of view, this is wrong. This section should contain assets with a circulation period of up to one year, and "Long-term receivables" should be displayed in section I of the balance sheet.

Current assets

Depending on the scope of the organization, in the aggregate balance sheet should be taken out as a separate line "stock-forming" part of the IBE. Firms that manufacture software in this account may reflect the costs of promotional literature and brochures. These elements form inventories, the creation costs of which are gradually expensed at cost. Such amounts should be attributed to deferred expenses.

Aggregated analytical balance sheet should contain articles that reflect the conditions of relationships with customers. It is necessary to allocate the amount, the amount of which the company may affect. The accounts receivable should include the following articles: “Goods”, “Buyers”, “Promissory notes receivable”, “Debt of companies” (short-term - up to 12 months). Shareholder arrears of contributions to the authorized capital are excluded from assets. SK decreases by the same value (section I of the liability). After this adjustment, you can calculate the real amount of capital.

The financial crisis of RZB 1998 and 2009 showed that the classification of short-term investments as the most liquid assets not always justified. Experts independently decide in each specific situation whether to attach the article “Investments” to “Cash” or consider them separately.

Own sources of financing

Aggregated balance sheet includes capital formed as a result of organizational changes and economic activity under one article. Changes in the cost of equipment and the issue of shares do not directly affect the result of production activities. While the accumulated profit increases the volume of the organization’s own funds.

The article “Authorized capital” of the balance sheet includes the amount of equity and additional paid-in capital minus debts of participants. "Accumulated capital" is formed from the funds of all funds, the social sphere, reserves, retained earnings, earmarked earnings.The costs of past years are deducted from the obtained value. If the organization does not accumulate profit, then it suffers losses. The negative value of own sources of financing indicates a loss of financial stability, a high dependence on borrowed sources of credit. This situation is typical for organizations that suffer losses for a long period. To restore solvency, you need to attract targeted revenues, increase retained earnings.

Borrowed funds

In this article, the aggregated balance sheet contains long-term and Short-term liabilities. Liabilities with a maturity of more than 12 months and IC constitute invested capital, which reflects the organization’s ability to use funds for a long period. Liabilities should be grouped into the following groups: Loans, Advances, Settlements with the Budget and Funds, Payroll and Other. With this grouping, a subsequent analysis of the aggregated balance sheet will determine the conditions for the organization’s relationship with the participants in the production process.

The article "Accounts payable" includes such elements: "Suppliers", "Promissory notes payable", "Debt to companies". The article "Settlements with the budget" should reflect the amount of funds payable to the budget and funds.

Aggregated balance sheet: an example

Well, we discussed the theory. Now let's look at how it looks in practice. For greater clarity, we will use the table.

Features

Depending on the field of activity, additional articles may be added to the aggregate balance sheet of the organization. Organizations of the construction industry should decipher the “wage bill" by the deadlines for the commissioning of objects. Apartments can be sold prior to their commissioning at market value. This allows us to consider them as a current asset.

Leasing companies should decipher "Accounts Payable". Advances received can be equated to equity. It is necessary to conduct an analysis of objects for late payments.

Enterprises of the military-industrial complex should amend the article “NZP” depending on the duration of the production process. Advances to customers can be attributed to other liabilities.

This form of reporting is often requested by banks when analyzing the financial condition of the client. They can also add to the balance sheet articles that characterize the activities of organizations in a particular sector of the economy.