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Balance Sheet Basics. Your balance sheet (sometimes called a statement of financial position) provides a snapshot of your practice's financial status at a particular point in time. This financial statement details your assets, liabilities and equity, as of a particular date. Although a balance sheet can coincide with any date, it is usually prepared at the end of a reporting period, such as a month, quarter or year.
Notes that disclose subsequent events. The company also has to address any subsequent events that happen after the close of the accounting period. How the company handles this type of event hinges on whether the event is a Type I or Type II event. Type I events affect the companyâs accounting estimates booking on the financial statements.