Once, when browsing the internet—in the aim of getting various example of balance sheet formats, I was surprised by a website (eghh I forgot the name since it was long time ago) that presented an example of balance sheet format and claimed the form as a standardized balance sheet format. So, is there standardized vs non-standardized balance sheet format?

The truth is NO, there is none, as far as I know. Please let me know if you ever found one. Balance sheet format has never been specified by any accounting bodies. Instead, formats and titles have developed as a matter of tradition and, through industry practice.

Two basic formats, by tradition, are used: (1) The balanced format, in which the sum of the amounts for liabilities and equity are added together on the face of the statement to illustrate that assets equal liabilities plus equity; and (2) The less frequently presented equity format, which shows totals for assets, liabilities, and equity but no sums illustrating that assets less liabilities equals equity. Those two formats can take one of two forms: (1) The account form, presenting assets on the left-hand side of the page and liabilities and equity on the right-hand side; and (2) The report form, which is a top-to-bottom or running presentation. Through this post I will show you two styles of balance sheet format which, for sure, are not based on any accounting standard. Instead, they are based on the industry practice tradition. Read on…