Balance sheet (bilance)
In Latvian: Bilance
The balance sheet (bilance) is the part of the financial statements that shows the assets of an undertaking and the sources that finance them on the last day of the financial year. Total assets must equal total liabilities and equity.
Assets list long-term investments (intangible assets, fixed assets and long-term financial investments) and current assets (inventories, debtors, short-term financial investments and cash). The other side lists equity, provisions, long-term creditors and short-term creditors.
It follows the layout in Annex 1 of the Law on Annual Statements and Consolidated Annual Statements, with the previous year figure beside each item. Amounts in the annual statement are rounded to whole euros.
The balance sheet total is one of the three criteria that sort companies into micro, small, medium and large. The limit for a micro-entity is EUR 450,000.
Example
On 31 December 2025 SIA "Ozols" has fixed assets of EUR 12,000, debtors of EUR 8,000 and cash of EUR 5,000, so total assets are EUR 25,000. On the other side it has equity of EUR 18,000 and short-term creditors of EUR 7,000, also EUR 25,000.
Legal basis
- Law on Annual Statements and Consolidated Annual Statements, Section 9 likumi.lv
- Law on Annual Statements and Consolidated Annual Statements, Section 10 likumi.lv
- Law on Annual Statements and Consolidated Annual Statements, Section 5 likumi.lv
This explanation is for information and does not replace tax or legal advice. The law in its current consolidated text prevails.