1. FINANCIAL STATEMENT ANALYSIS
BALANCE SHEET
(The Statement of Financial Position-IAS 1)

2. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
International Accounting Standard 1 Presentation of Financial Statements (IAS 1)
The objective of this Standard is to prescribe the basis for presentation of financial position of reporting entity.
Standard does not prescribe the order or format in which an entity presents items. An entity makes the judgment about whether to present additional items separately on the basis of followings:
the nature and liquidity of assets;
the function of assets within the entity; and
the amounts, nature and timing of liabilities.

3. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
As a minimum, the statement of financial position shall include following items:
cash and cash equivalents
trade and other receivables
inventories
financial assets
property, plant and equipment;
intangible assets;
investment property
investments accounted for using the equity method;
biological assets
the total of assets classified as held for sale and assets
assets held for sale and discontinued operations
financial liabilities
trade and other payables
liabilities and assets for current tax
deferred tax liabilities and deferred tax assets,
provisions
liabilities included in disposal groups classified as held for sale
non-controlling interests, presented within equity and
issued capital and reserves

4. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
PRESENTATION OF ASSETS AND LIABILITIES Reporting According to Liquidity: If a presentation based on liquidity provides information that is reliable and more relevant an entity shall present all assets and liabilities in order of liquidity. Current/Non-Current Distinction: An entity shall present current and non-current assets, and current and non-current liabilities, as separate classifications in its statement of financial position. When an entity supplies goods or services within a clearly identifiable operating cycle, separate classification of current and non-current assets and liabilities provides useful information.

5. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
Assets Balance
Sheet Liabilities
I. Current Assets
III. Current Liabilities
Cash and Cash Equivalents)
Financial Liabilities (loans and issued bonds)
Financial Assets
Trade and Other Payables
Trade and Other Receivables
Current Tax Payables
Inventories
Provisions
Biological Assets
Other Current Assets
Assets Held For Sale
II. Non-Current Assets
IV. Non-Current Liabilities
Investments Accounted For Using The Equity Method
Financial Liabilities (long-term loans and issued bonds)
Property, Plant And Equipment
Deferred Tax Liabilities (Ertelenen Vergi Yükümlülükleri)
Intangible Assets
Deferred Tax Assets (Ertelenen Vergi Varlıkları)
V. Equity
Assets Held For Sale and Discontinued Operations
Issued Capital and Reserves
Other Non-current Assets
Current – Non Current Assets
An entity shall classify an asset as current when:
cash or a cash equivalent
financial assets (marketable securities)
trade receivables
inventories,
biological assets
other current assets (it expects to realize the asset within twelve months after the reporting period)
An entity shall classify all other assets as non- current.

6. Current – Non Current Liabilities
Assets Balance
Sheet Liabilities
I. Current Assets
III. Current Liabilities
Cash and Cash Equivalents)
Financial Liabilities (loans and issued bonds)
Financial Assets
Trade and Other Payables
Trade and Other Receivables
Current Tax Payables
Inventories
Provisions
Biological Assets
Other Current Assets
Assets Held For Sale
II. Non-Current Assets
IV. Non-Current Liabilities
Investments Accounted For Using The Equity Method
Financial Liabilities (long-term loans and issued bonds)
Property, Plant And Equipment
Deferred Tax Liabilities (Ertelenen Vergi Yükümlülükleri)
Intangible Assets
Deferred Tax Assets (Ertelenen Vergi Varlıkları)
V. Equity
Assets Held For Sale and Discontinued Operations
Issued Capital and Reserves
Other Non-current Assets
Current – Non Current Liabilities
Some current liabilities, such as trade payables and accruals for employee and operating costs, are part of the working capital.
For this reason, trade payables, even if the maturity of longer than 12 months will not classified as non-current liabilities.

7. Comparison of Current/Non-Current Distinction
IAS 1
Uniform Accounting System
I. Current Assets
Cash and Cash Equivalents (Cash and Cash at Banks)
Monetary Assets
Financial Assets (Hold for sale in 12 moths or operating cycle)
Marketable Securities
Trade and Other Receivables
Trade and Other Receivables
Inventories
Biological Assets
Other Current Assets
(Prepayments and Accrued Income and Other Current Assets)
Long-Term Construction Contract Costs
Prepayments and Accrued Income
Assets Held For Sale

8. Comparison of Current/Non-Current Distinction
IAS 1
Uniform Accounting System
II. Non-Current Assets
Trade and Other Receivables
Investments Accounted For Using The Equity Method
Financial Non-Current Assets
Property, Plant And Equipment
Tangible Assets
Intangible Assets
Deferred Tax Assets
Deferred Tax Liabilities
Assets Held For Sale and Discontinued Operations
Depletable Assets
Other Non-Current Assets
(Prepayments and Accrued Income and other non-current assets)
Prepayments and Accrued Income

9. Comparison of Current/Non-Current Distinction
IAS 1
Uniform Accounting System
III. Current Liabilities
Financial Liabilities (Loans And Issued Bonds)
Loans
Trade and Other Payables
Trade Payables and Other Payables
Current Tax Payables
Taxes and Social Security Charges Payables
Provisions
Provisions for Liabilities and Charges
Other Liabilities (Differed Income and Expense Accruals and Other Non-current Liabilities)
Advances Received
Long-Term Construction Contract Revenues
Deferred Income and Expense Accruals
IV. Non-Current Liabilities
IV. Non-current Liabilities
Financial Liabilities (long-term loans and issued bonds)
Deferred Tax Liabilities
Other Liabilities (Defered Income and Expense Accruals and other non-current liabilities)
Other Non-Current Liabilities
V. Equity
Issued Capital and Reserves
Paid-in Capital
Capital Reserves
Profit Reserves
Retained Earnings (Profits of Previous Periods Retained losses (Loses of Previous Periods)
Net Profit/Loss of Current Period

10. Comparison of Current/Non-Current Distinction
IAS 1
Uniform Accounting System
III. Current Liabilities
Financial Liabilities (Loans And Issued Bonds)
Loans
Trade and Other Payables
Trade Payables and Other Payables
Current Tax Payables
Taxes and Social Security Charges Payables
Provisions
Provisions for Liabilities and Charges
Other Liabilities (Differed Income and Expense Accruals and Other Non-current Liabilities)
Advances Received
Long-Term Construction Contract Revenues
Deferred Income and Expense Accruals
IV. Non-Current Liabilities
IV. Non-current Liabilities
Financial Liabilities (long-term loans and issued bonds)
Deferred Tax Liabilities
Other Liabilities (Defered Income and Expense Accruals and other non-current liabilities)
Other Non-Current Liabilities
V. Equity
Issued Capital and Reserves
Paid-in Capital
Capital Reserves
Profit Reserves
Retained Earnings (Profits of Previous Periods Retained losses (Loses of Previous Periods)
Net Profit/Loss of Current Period

11. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
INFORMATION TO BE PRESENTED EITHER IN THE STATEMENT OF FINANCIAL POSITION OR IN THE NOTES An entity shall disclose, either in the statement of financial position or in the notes, further sub- classifications of the line items presented, classified in a manner appropriate to the entity’s operations.

12. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)

13. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)

14. FINANCIAL STATEMENTS Balance Sheet (Statement of Financial Position)
SUMMARY According to IAS 1, while the main asset and liability items are being reported on the face of balance sheet, the detailed information is presented in notes. On the other hand, according to Uniform Accounting System, the main asset and liability groups and the details are both reported on the face of balance sheet. In addition, the measurement and evaluating methods are presented in balance sheet notes.

15. FINANCIAL STATEMENT ANALYSIS
Example 1: Prepare the balance sheet which is suitable for financial analysis by using the items listed below: TL
Cash and Cash Equivalents
7.000
Income Accruals
2.000
Marketable Securities
3.000
Taxes Payable
5.000
Short-term Loans
11.000
Goodwill
6.000
Issued Bonds
10.000
Prepaid Expenses
Trade Payables
15.000
Net Profit/Loss of The Period
Trade Receivables
8.000
Receivables From Shareholders
1.000
Finished Goods
20.000
Investments in Subsidaries
Raw Materials
Work-in Process
Property, Plant and Equipment
60.000
Expense Accruals
Retained Earnings (profit reserves)
Revaluation Reserves For Fixed Assets (capital reserves)
Long-term loans
30.000
Receivables from Subsidaries
Accumulated Depreciation
Paid-in Capital ?
Advance Received

16. ABC Co. 31.12.2010 Balance Sheet Current Assets 55.000
Current Liabilities
39.000
Cash and Cash Equivalents
7.000
Short-term Loans
11.000
Marketable Securities
3.000
Trade Payables
15.000
Trade Receivables
8.000
Advance Received
5.000
Other Receivables
Taxes Payable
- Receivables From Shareholders
1.000
Expense Accruals
- Receivables from Subsidiaries
2.000
Non-Current Liabilities
40.000
Inventories
30.000
Issued Bonds
10.000
- Raw Materials
Long-term loans
- Work-in Process
Equity
47.000
- Finished Goods
20.000
Paid-in Capital
35.000
Prepaid Exp. and Income Acc.
4.000
Capital Reserves
- Income Accruals
- Revaluation Reserves for Fixed Assets
- Prepaid Expenses
Profit Reserves
Non-Current Assets
71.000
- Retained Earnings
Investments in Subsidiaries
Net Profit/Loss of The Period
Property, Plant and Equipment
60.000
Accumulated Depreciation
(15.000)
Goodwill
6.000
TOTAL ASSETS
TOTAL LIABILITIES AND EQUITY

17. FINANCIAL STATEMENT ANALYSIS
Example 2: Prepare the balance sheet according to IAS 1 by using the items listed below: TL
Cash and Cash Equivalents
2.000
Other Current Assets
Financial Assets
2.500
Deferred Tax Liabilities
5.000
Short-term Loans
10.000
Goodwill
6.000
Issued Bonds (long term)
Provision for Taxes
Trade Payables
15.000
Net Profit/Loss of The Period ?
Trade Receivables
Investments in Subsidaries
Finished Goods
Revaluation Funds (Capital Reserves)
Raw Materials
Paid-in Capital
30.000
Property, Plant and Equipment
50.000
Long-term loans
20.000
Retained Earnings
Accumulated Depreciation
Other Current Liabilities