Aqid ERPMeaning
The balance sheet (الميزانية العمومية), called the statement of financial position under IFRS, lists assets, liabilities and equity at a date. Assets are what the business owns or is owed: cash, receivables, inventory, equipment net of depreciation. Liabilities are what it owes: payables, VAT due, loans, the end-of-service provision. Equity is the owners' residual: capital plus retained profits. The two sides are equal by construction, because every transaction was recorded on both.
In filed statements assets and liabilities are split into current (within a year) and non-current, with a comparative column for the prior year. Inventory is carried at the lower of cost and net realisable value, never at selling price. The zakat base is built from this statement, which is why its figures are checked against the zakat return.
Also called: statement of financial position · الميزانية العمومية
Example
At 31 December Al Noor holds assets of 411,080.00 (cash 83,080.00, receivables 142,000.00, inventory 96,000.00, equipment 90,000.00) against liabilities of 118,080.00. Equity is 293,000.00: capital 100,000.00 and retained earnings 193,000.00. 118,080 plus 293,000 equals 411,080; the sheet balances.