StatementOfFinancialPosition

Three major parts of Statement Of Financial Position are:

Assests

it's what company uses to make profit: cash, machinery, factories.

Short term assets company uses for less than a year: cash, materials for production, money that other companues owns this one. These assets could be quickly turned into cash

Long term assets - company uses for more than a year: buildings, machinery, land.

Assets divides into the following groups:

• Cash and cash equivalents (Денежные средства и их эквиваленты) - it's a real money that company have in cash or on bank accounts. Using this money company can purchase another business, launch a new project or pay dividents to investors
• Short-term investments (Краткосрочные инвестиции) - it's an invested money. Usually in short-term government bonds. These bonds are very liquid and could be sold in short time. This item is useful to estimate company liabilities.
• Accounts receivable (Дебиторская задолженность) - is the sum of money due to a firm for goods or services delivered or used but not yet paid for by customers. This item helps to understand how doog company's managment works.
• Inventory (Запасы) - company's goods and products that are ready to sell, along with the raw materials that are used to produce them. Investor should keep an eye on inventory and sales. If inventories go up and sales keep the same than company has some problems with selling it's goods. Espessially bad grow of inventory for retail companies. Sooner or lated goods that nobody want to purchase becole losses.
• Deferred income taxes (Отложенные налоговые активы) - virtual sum of money that company could use to reduce taxes in future. If company, for example had losses in previouse year, it can reduce taxes for profit in current year.
• Property plant and equipment, PPE (Основные средства) - also called fixed assets, meaning they are physical assets like land, building, transport that a company cannot easily liquidate or sell. Each year accountant department revise value of the PPE. They decrease the value of PPE and increase amortization portion of the money. These money are still available in company, they just help company to decrease profit and invest more money in new PPE. In report company put value of PPE based on purchase sum or spended sum to create PPE. If complay sell PPE for higher price it would get profit on balance sheet, otherwise - losses.
• Intangible assets (Нематериальные активы) - an asset that is not physical in nature. Brand recognition and intellectual property, such as patents, trademarks, and copyrights. If company bought patent or technology it will show it in this section. However if company develops something, it couldn't put it into assets. That is why tech and pharmaceutical companies has lower assets then production companies.
• Goodwill (Гудвилл) - when a buyer acquires an existing business it could cost more than balance value. Goodwill represents assets that are not separately identifiable. The difference between paid money and balance money is goodwill. Company could keep goodwill the same or decrease it over time if purchased business not that good as it should be, but company could not increase goodwill.

Liabilities

Liabilities is what company owns to other people and companies.

Short term liabilities should be paid off within one year. Long term liabilities should be paid of in more than a year.

Liabilities divides into the following groups:

• Trade payables, Accounts payable (Торговая кредиторская задолженность). It's a mony company owns to other companies for goods it already get.
• Deferred revenue, Deferred income (Выручка будущих периодов, доходы будущих периодов) - money company got from customers for goods that would be delivered in future. If person paid for one year subscription, company in a quarterly report could account only one forth as an income, another portion of money would be Deferred income
• Deferred tax liability (Отложенные налоговые обязательства) - tax that is assessed or is due for the current period but has not yet been paid.
• Operating leases (Аренда, лизинг) - contract that permits the use of an asset but does not convey ownership rights of the asset
• Short term debt (Краткосрочные кредиты и займы) - should be paid off within one year.
• Long term debt (Долгосрочные кредиты и займы) - should be paid of in more than a year.

Net_Debt.xlsx

Equity (Капитал)

It's a result of substraction liabilities from assets

• Share capital (Уставный капитал) - is the money a company raises by issuing common or preferred stock. The amount of share capital or equity financing a company has can change over time with additional public offerings
• Additional share capital (Добавочный капитал / эмиссионный доход) - it's the money company raises by selling shares above their nominal values
• Treasury stocks (Казначейские акции / Резерв выкупленных собственных акций) - he portion of shares that a company keeps in its own treasury. They may have either come from a part of the float and shares outstanding before being repurchased by the company or may have never been issued to the public at all.
• Retained earnings (Нераспределенная прибыль) - the amount of net income left over for the business after it has paid out dividends to its shareholders
• Minority interest, Non-controlling interests (Неконтролирующая доля участия) - is the share of equity ownership in a subsidiary’s equity that is not owned or controlled by the parent corporation. Accordind to accounting standards in balance sheet company should show 100% of subsidiary (дочерней) company. However, company could own just a part of subsidiary company. In this case portion of capital above the ownership goes to Minority interest.