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Balance Sheet in United Kingdom

Definition of Balance Sheet

In accordance with the work A Dictionary of Law, this is a description of Balance Sheet : A document presenting in summary form a true and fair view of a company’s financial position at a particular time (e.g. at the end of its financial year). It must show the items listed in either of the two formats set out in the Companies Act 1985. Its purpose is to disclose the amount that would be available for the benefit of members if the company were immediately wound up and liabilities were discharged out of the proceeds of selling its assets.

See accounts; statements of standard accounting practice.

Balance sheet in the Context of Mortgages

Forms part of the annual report and is the statement of a value for a company’s assets and liabilities and the end of the financial year (balance sheet date). It shows a company’s financing through external debt, profit generation and the issuing of share capital.

Similar Terms

Balance breakdown

Balance breakdown

This is a fee that can be charged by your lender for a month-by-month breakdown of your account balance, over and above the information contained in your Annual Statement. Costs 15 – 30

Outstanding balance

Outstanding balance

The amount to be repaid at any point in time.

Payment of balance

Payment of balance

This usually takes place between a week and a month after exchanging contracts. It is possible to have a simultaneous exchange and completion if you are in a real hurry to get moving. When you complete the sale, your solicitor forwards the remaining balance of the purchase price to the seller’s solicitor. You then have the right to take occupancy of the property and are free to move in.

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(2017, 04). Balance Sheet lawi.org.uk Retrieved 01, 2022, from https://lawi.org.uk/balance-sheet/

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"Balance Sheet" lawi.org.uk. 04, 2017. Accesed 01 2022. https://lawi.org.uk/balance-sheet/

Agostino Von Hassell, 'Balance Sheet' (lawi.org.uk 2017) <https://lawi.org.uk/balance-sheet/> accesed 2022 January 22

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Schema Summary

  • Article Name: Balance Sheet
  • Author: Agostino Von Hassell
  • Description: Definition of Balance Sheet In accordance with the work A Dictionary of Law, this is a description of Balance Sheet : A [...]

This entry was last updated: April 23, 2017



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