A statement of affairs template is a legal document listing the assets and liabilities of a company or individual, typically produced when declaring bankruptcy. It is an archive that holds the details for a company’s list of assets and debts. A statement of affairs is helpful in certain business situations, such as one such situation includes the calculation of a company’s total cost, thus making the insolvency process much easier. Banks often ask for the statement of affairs while resolving the assets. This document provides useful information to resolve certain legislative issues and can be presented in court. Financial department in any company with the help of financial experts, are liable to generate the statement of affairs.
Importance of Statement of Affairs
Generally, the statement of affairs is a summary of a company’s assets and liabilities. It states the net book value and amount expected to be realized at the date of Insolvency of the business. Accompanying the balance sheet is a list of creditors and shareholders. A statement of affairs can be made in a number of different formats; a few basic sections must be included in whatever layout you choose for this piece of document. The person generating the statement of affairs format can include another column stating what he/she thinks of the probable cost of an asset or the property.
Benefits of Statement of Affairs
There are numerous benefits of a statement of affairs for companies as it has a clear record of their assets and liabilities. It is mainly used to calculate profits and loss for the company as it is the simplest way to find it. This contains all the present and new details of assets and liabilities used in a specific duration which helps company to bring out the clear and accurate outcome. It gives shareholders a clear image of the company’s affairs. It highlights the dues of the company and lists its shareholders with accurate information. This document is used to give an in depth view of the business partners and clients.
Details of Statement of Affairs Template
The statement of affairs may also include a brief statement introducing the company or the project for which the report is being generated. In the end, the statement of affairs is approved by the executive person; therefore a space for the signatures of the person in authority along with the person who generated the report is provided. It incorporates the book value of all of the company’s assets, which can be presented in the form of a list or a paragraph using bullets or numbers.
Templates for Statement of Affairs
