What is Balance Sheet Statement?
Balance Sheet Statement is a core financial statement (or component of one) that reports a specific aspect of a company’s financial position or performance. It is required under IFRS and Saudi accounting practice for any company that prepares formal financial reports.
How It Works
- Compile data from the general ledger and subsidiary ledgers to produce Balance Sheet Statement.
- Apply IFRS presentation and disclosure requirements.
- Reconcile to other financial statements for consistency.
- Have the statement reviewed by management and external auditors.
- Publish the statement as part of the annual or quarterly report.
Saudi Context
Under Saudi accounting practice, Balance Sheet Statement is reported in line with IFRS as adopted by SOCPA. ZATCA-registered companies must keep supporting documentation and reflect Balance Sheet Statement consistently in their VAT returns, zakat declarations, and Annual Financial Statements. Saudi Vision 2030 compliance and CMA disclosure rules add further reporting layers for listed firms.
Example
A Riyadh-based trading company applies Balance Sheet Statement in its month-end close. The accounting team computes the figure using actual transactional data from Qoyod, compares it against the prior period and budget, and includes a narrative in the monthly management report so leadership can act on the result.