The difference between balance sheet and income statement

The balance sheet shows the financial situation of a company at a point in time (the balance sheet date), but the income statement reflects the operational results of the company over a period of time.

The face of the balance sheet should include:

1. property, plant and equipment
2. investment property
3. intangible assets
4. financial assets
5. investments accounted for using the equity method
6. biological assets
7. inventories
8. trade and other receivables
9. cash and cash equivalents
10. trade and other payables
11. tax liabilities
12. provisions
13. financail liabilities
14. minority interest
15. issued capital and reserves.

As a minimum, the face of the income statement should include:

1. revenue
2. finance costs
3. share of profits and losses of associates and joint ventures accounted for using the equity method
4. tax expense
5. a single amount comprising the post-tax profit or loss on discontinued operations
6. profit or loss for the period
7. minority interest
8. net profit or loss for the period.

The important difference between the balance sheet and income statement is that one is at a point in time, the other is over a period of time. You should according to the specfic to prepare the balance sheet and income statement under the accounting stardards.

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1. Balance sheet analysis
2. Income statement analysis
3. Balance sheet example
4. Income statement example
5. The balance sheet equation and methods of setting out