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Balance Sheet

company and statement

BALANCE SHEET. .\ balance sheet is a statement prepared so as to exhibit on the one hand the liabilities of a company, or person. and. on the other hand. the assets or property available to meet the liabilities.

A balance sheet must be so drawn up as to exhibit a truthful statement of the position. The position should not be repre sented as being better than it actually is, but the position may be better than is disclosed in the statement. Lord Justice Buckley has said : " The purpose of the balance sheet is primarily to show that the financial position of the company is at least as good as there stated, not to show that it is not and may not be better." The balance sheet of a company must be signed on behalf of the board by two directors, or, if there is only one, by that director, and the auditors' report must be attached to the balance sheet or there must be a reference to it at the foot of the balance sheet, and the report must be read before the company in general meeting and shall be open to inspection by any shareholder.

(See Section 113 of the Companies (Con solidation) Act, 190S. under AUDITORS.) Section 26, s.s. 3 of that Act requires that the annual summary to be filed with the registrar of companies must (except where the company is a private company) include a statement, in the form of a balance sheet, audited by the company's auditors, contain ing a summary of its share capital, its liabilities, and its assets, and giving such particulars as will disclose the general nature of those liabilities and assets, and how the values of the fixed assets have been arrived at, but the balance sheet need not include a statement of profit and loss. (See