Part VI: Balance Sheet

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The new balance sheet ADDS:

  • Detailed segregation of investments

The subcategories regarding investments in the balance sheet itself is overly detailed compared to the disclosures on other accounts on the balance sheet. It would be beneficial to retain the distinction between financial investments and fixed assets. It would be much more helpful to the users to let them know what portions of each are permanently restricted.

Unfortunately, it FAILS to add:

  • Current vs. Noncurrent Asset and Liability Distinctions

This distinction is what is called a "classified" balance sheet and is required in for-profit reporting. The breakdown between current and long term assets and between current and long term liabilities provides valuable information to determine the liquidity of an organization.

Elizabeth Keating CPA, 23 June 2007

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