Structural balance

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A structural balance is of analysts used to balance sheets of companies to make comparable and better analyzed.

basis

A trade balance is processed into a structural balance. The preparation means that the assets side is divided into fixed and current assets, the liabilities side into equity and debt. There are principles for processing, but no generally binding rules.

The structural balance enables analysts to identify coverage ratios. It also facilitates the presentation of developments in comparison to previous periods.

The necessary processing measures are divided into:

  • Reclassification, balance sheet items are offset against other items
    • Regrouping ; here, existing balance sheet items are assigned to other balance sheet items and, so to speak, "shifted". The balance sheet total does not change.
    • Neoplasm ; Here, existing balance sheet items are assigned to a new item to be created. The balance sheet total does not change.
    • Splitting ; here existing items are separated and reclassified into different balance sheet items. The balance sheet total does not change.
    • Offsetting ; an existing balance sheet item (e.g. an asset item) is offset against a balance sheet item on the other side of the balance sheet (e.g. a liability item). This reduces the balance sheet total.
    • Extension ; is the offsetting of the netting. A previously offset position is now shown individually. This increases the balance sheet total
  • Revaluation; items are valued differently, which leads to changes in the balance sheet total.

Examples of processing measures

Reclassification

  • the goodwill is offset against equity
  • Outstanding deposits (not called in) are offset against equity, and (called in) are reclassified as receivables
  • Deferred tax assets are offset against equity (uncertain value, as it depends on future taxable profits)
  • Active prepaid expenses are included in the current assets
  • the distribution amount (e.g. dividend ) is calculated as part of the short-term borrowed capital

etc.

Example:

Balance sheet analytical equity

Signed Principal - outstanding contributions

+ Capital reserve + revenue reserve (general, statutory, other)

- capitalized expenses for start-up and expansion - capitalized goodwill - deferred tax assets - discount

+ Equity portion of the special item m. RL share (50%) / from 2008 30% tax share

- Loss / + profit after distribution

= balance sheet analytical equity

Revaluation

  • Unclaimed contributions to subscribed capital are offset against equity
  • called deposits
    • not offset if the shareholder is solvent
    • will be offset if the shareholder is not solvent

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