Balance Sheet

From Open Risk Manual

Definition

A Balance Sheet is a representation of an entity's financial condition at a certain moment in time. It comprises of a number of balances arranged in various collections, most notably as Asset and Liability sets.

The balance sheet is an itemized statement that lists how much an organization owns and owes at a given moment in time. It is called a balance sheet because the value of what the organization owns must equal to the total of its debts and its net worth. In many jurisdictions, it is a compulsory document by law.

Balance Sheet Dynamics

The Balance Sheet of an active entity is constantly evolving, reflecting the changing operations, external conditions etc.

Balance Sheet Risk

Risk factors intrinsic to the entity's operations do eventually reflect on the balance sheet as Balance Sheet Risks.

Balance Sheet Management

Management Action that is talking the balance sheet explicitly into account is termed Balance Sheet Management

Assets and Liabilities

This is a particular representation that categorizes the entries ( balances) in two classes:

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