Register now or log in to join your professional community.
Provisional Balance Sheet is the one prepared as at the endan accounting period as per the books of accounts beforestatutory audit.
A provisional balance sheet is a financial document widely used by companies to prepare for financial audits or report financial information for any reason. In fact, most balance sheets that reflect a company's current financial information could be considered a provisional balance sheet. Although commonly associated with financial reporting, provisional balance sheets are useful for other types of data reporting that require an auditing procedure.
Balance sheets are financial documents that report a company's assets, such as cash or capital equipment, as well as that company's obligations, such as outstanding debts. The word "provisional" indicates something that serves only for a specific period of time and is not permanent. Provisional balance sheets are, therefore, a type of balance sheet that reflects a company's financial information accurately for a short period of time, sometimes as short as one day.
Provisional Balance Sheet is the one prepared as at the endan accounting period as per the books of accounts beforestatutory audit. In other words it's an un-audited BalanceSheet, which may be subject to change during the course ofstatutory audit.
Thank you for your invitationagreed with an answer, Professor Mohammed
Provisional b/s is a highlighing something that serves only for a specific period or time its not permenant.
A provisional balance sheet is a financial document widely used by companies to prepare for financial audits or report financial information for any reason. In fact, most balance sheets that reflect a company's current financial information could be considered a provisional balance sheet. Although commonly associated with financial reporting, provisional balance sheets are useful for other types of data reporting that require an auditing procedure.
Provisional Balance Sheets
Balance sheets are financial documents that report a company's assets, such as cash or capital equipment, as well as that company's obligations, such as outstanding debts. The word "provisional" indicates something that serves only for a specific period of time and is not permanent. Provisional balance sheets are, therefore, a type of balance sheet that reflects a company's financial information accurately for a short period of time, sometimes as short as one day.
When to Use
Unless based on future asset and debt projections, almost every balance sheet created to express a company's financial information is provisional as the company's current finances will likely change even slightly in days. Provisional balance sheets are drawn up any time a company or business needs to report current financial data for any reason. Commonly, provisional balance sheets are created in advance of a financial audit to ensure no financial issues have been overlooked. Provisional balance sheets are also created to report current financial information to prospective investors, although investors also typically look for balance sheet projections that indicate future financial strength.
Features
One of the most significant features of a provisional balance sheet is the date for which the balance sheet reflects financial data. This is typically found near the top of the balance sheet document and can range in length from a day to a year or longer, depending on the scope of financial or production data being reported. Provisional balance sheets include various pieces of key financial data, such as net worth, revenue and gross debt.
Applications
The use of the term "provisional balance sheet" extends from financial reporting into various other forms of operational reporting techniques for organizations or individuals, especially those requiring a form of auditing. For example, some colleges audit a student's provisional balance sheet of completed courses to ensure that a student is eligible for graduation. Provisional balance sheets can also be used by manufacturers and agricultural producers to report production details for a specific period.
lost year assets and liabalities
