Balance of payments statement

Records of a country's international economic transactions, that is, the records of its acceptance of goods and services provided by other countries in the world, and the records of its creditor's rights and debts to other countries in the world. The balance of payments is the balance of a country's external funds, and the balance of payments generally adopts the double-entry bookkeeping principle to record the loan amount of each transaction. Therefore, in principle, the total amount of borrowings and loans of all items in this table is equal, and the net difference is zero. According to the International Monetary Fund's definition of balance of payments, the balance of payments mainly includes the following contents: ① Current account. It is the most basic and important item in the balance sheet, reflecting a country's frequent international economic transactions, including the transactions of goods, services and income between residents and non-resident entities except financial items and free transfer payments. ② Capital account. It reflects a country's foreign capital export and input in a certain period of time, that is, the transaction of all foreign financial assets such as creditor's rights and debts. Capital items include direct investment, securities investment and other capital. ③ Balance projects. It is a project to balance the surplus or deficit of current account and capital account in a certain period of time, including mistakes and omissions, official reserves, SDR allocation and so on. China Since September 1985, the State Administration of Foreign Exchange has officially compiled and published China's balance of payments.

balance sheet

Balance sheet is an accounting statement that reflects the financial status of assets, liabilities and owners' equity of an enterprise on a specific date.

Generally speaking, on the balance sheet, the composition of how many assets, what assets, how many liabilities, what liabilities and how many net assets are clearly reflected. In the study of financial statements, the balance sheet is a good start, because it reflects the financial structure and status of enterprises. The balance sheet describes the financial situation of the enterprise at the time of publication, just like we press the shutter with a camera in a high-speed vehicle, except that the "vehicle" here is the capital flow. What we get is a static picture, which only describes the situation at that time, that is, the information has timeliness.

The role of balance sheet

From the function of the balance sheet, there are four main functions:

1. reflects assets and their distribution.

The balance sheet can reflect the assets owned by an enterprise at a specific time and their distribution. It shows the total assets and assets of an enterprise at a certain point in time. For example, how many current assets, how many fixed assets, how many long-term investments, how many intangible assets and so on.

2. Indicate the debts undertaken by the enterprise and the repayment time.

The balance sheet can show the debts undertaken by the enterprise at a specific time, the repayment time and the repayment object. If it is a current liability, it must be repaid within 1 year; If it is a long-term debt, the repayment period can exceed 1 year. Therefore, from the balance sheet, we can clearly know who the enterprise owes money at a specific time, how much money it owes and when to repay it.

3. Reflect the net assets and their reasons

The balance sheet can reflect the net assets owned by investors at a specific time and the reasons for their formation. Net assets are actually shareholders' equity or owners' equity. At some point, assets should be equal to liabilities plus shareholders' equity. Therefore, net assets are assets minus liabilities. It should be noted that assets can be said to be equal to liabilities plus shareholders' equity, but it can never be said to be equal to shareholders' equity plus liabilities. They are fundamentally different. Because the accounting standards particularly emphasize putting others first, that is to say, the assets of an enterprise should be used to repay debts first, and the rest, no matter how much, should be owned by investors. If we talk about owner's rights and interests first, we will put ourselves in front of others, which is not allowed by accounting rules.