Changes

The statements (including the format) may be specified by law or regulation.  Larger companies will also include extensive footnotes (some of which are required by law or regulation) as well as a management discussion and analysis of their contents.

The statements (including the format) may be specified by law or regulation.  Larger companies will also include extensive footnotes (some of which are required by law or regulation) as well as a management discussion and analysis of their contents.

Governmental entities have similar statements (often referred to as '''Comprehensive Annual Financial Reports'''), but differ due to specific and unique requirements for governmental accounting.

Governmental entities have similar statements (often referred to as '''Annual Comprehensive Financial Reports'''<ref>Prior to 2021 the term used was '''Comprehensive Annual Financial Report''', or '''CAFR'''.  However, that acronym - if pronounced as a word - is a racist term for Black South Africans, similar to "the N-word" in America; thus, the decision was made to discontinue its use.</ref>) but differ due to specific and unique requirements for governmental accounting.

==Balance Sheet==

==Balance Sheet==

Assets and liabilities are classified as '''current''' and '''non-current'''.

Assets and liabilities are classified as '''current''' and '''non-current'''.

*Current assets are those which are cash or are highly liquid (i.e., can easily be converted to cash); these include short-term investments (such as certificate of deposits), accounts receivable, inventories, and prepaid expenses.

*Current assets are those which are cash or are highly liquid (i.e., can easily be converted to cash); these include short-term investments (such as certificate of deposits), accounts receivable (less any estimated amounts for uncollectible accounts), inventories, and prepaid expenses.  If a company has a long-term investment with a portion due to be collected in the current year, that portion is classified as a current asset.

*Non-current assets include property, plant, and equipment (less amounts for accumulated [[depreciation]] and [[amortization]]), and long-term investments (such as loans made to other entities).

*Non-current assets include property, plant, and equipment (less amounts for accumulated [[depreciation]] and [[amortization]]), and long-term investments (excluding the portion due in the current year).

**For non-profit/not-for-profit entities, this category includes assets which are restricted for use (usually for a specific purpose).  The restriction can either be by the donor, or the entity can choose to restrict the asset's use; either way it must be shown separately from unrestricted assets.

**For non-profit/not-for-profit entities, this category includes assets which are restricted for use (usually for a specific purpose).  The restriction can either be by the donor, or the entity can choose to restrict the asset's use; either way it must be shown separately from unrestricted assets.

*Current liabilities are those which are expected to be paid within one year or less; these include accounts payable, taxes currently due, and the current portion of long-term liabilities.

*Current liabilities are those which are expected to be paid within one year or less; these include accounts payable and taxes currently due.  If a company has a long-term liability with a portion due in the current year (such as a building mortgage), that portion is classified as a current liability.

*Non-current liabilities include capital leases and mortgages (excluding the portion due within the current year).

*Non-current liabilities include capital leases and mortgages (excluding the portion due within the current year).

===Difference in Standards===

===Difference in Standards===

====Private Sector====

====Private Sector====

Any meaningful analysis of a company's finances must include a review of its balance sheets for the current and past operating cycles. Because of the large amount of information that such a summary can provide, United States law requires that all publicly held and traded companies provide balance sheets at regular intervals (usually four times a year).  

Any meaningful analysis of a company's finances must include a review of its balance sheets for the current and past operating cycles. Because of the large amount of information that such a summary can provide, United States law requires that all publicly held and traded companies provide balance sheets at regular intervals (usually four times a year).  However, privately-held companies may only show balance sheets for a current year.

====Public Sector====

====Public Sector====