# ASC 210-10-05: Balance Sheet — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/210/10/#05-overview-and-background) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:4af0855449ffb107b4bc544ed838ba98a0495edda58ad7e07f8edb9fd8cd7378 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 210-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/210/10/#05-overview-and-background) SEC content: no ##### [210-10-05-1](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:918e2905f894d819aa191d3be307cfc8a8e457aede26bcb8967bafcdad43b6ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Balance Sheet Topic includes the following two Subtopics: 1. a Overall 2. b Offsetting. ##### [210-10-05-2](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:6417998d54d1675b9ded62b28792d19e9293b58ea9b55a30df684ad5f2313666 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The balance sheet is commonly referred to as statement of financial position. For purposes of the Codification, both titles are interchangeable. ##### [210-10-05-3](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:bb6113de781e44584c210e7a62de6e0a12619eb68050f0025cb1e7d96ff18bd5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Offsetting Subtopic provides guidance about offsetting amounts for certain contracts and repurchase and reverse repurchase agreements. ##### [210-10-05-4](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:647bd138d192f218c85f599b828fa09ae02530f6209732e35a88682a0dc7cdcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides general guidance on the classification of [current assets](https://asc.understandingaccounting.org/glossary/c/#current-assets "Current assets is used to designate cash and other assets or resources commonly identified as those that are reasonably expected to be realized in cash or sold or consumed during the normal operating cycle of the business. See paragraphs 210-10-45-1210-10-45-2210-10-45-3210-10-45-4.") and [current liabilities](https://asc.understandingaccounting.org/glossary/c/#current-liabilities "Current liabilities is used principally to designate obligations whose liquidation is reasonably expected to require the use of existing resources properly classifiable as current assets, or the creation of other current liabilities. See paragraphs 210-10-45-5210-10-45-6210-10-45-7210-10-45-8210-10-45-9210-10-45-10210-10-45-11210-10-45-12.") and discusses the determination of [working capital](https://asc.understandingaccounting.org/glossary/w/#working-capital "Working capital (also called net working capital) is represented by the excess of current assets over current liabilities and identifies the relatively liquid portion of total entity capital that constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the entity."). The balance sheets of most entities show separate classifications of current assets and current liabilities (commonly referred to as classified balance sheets) permitting ready determination of working capital. ##### [210-10-05-5](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:af535832e51db71faf6fea41bab80f00eed0232b10084088adb18e320e31b6b8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Financial position, as it is reflected by the records and accounts from which the statement is prepared, is revealed in a presentation of the assets and liabilities of the entity. In the statements of manufacturing, trading, and service entities, these assets and liabilities are generally classified and segregated; if they are classified logically, summations or totals of the current or circulating or working assets (referred to as current assets) and of obligations currently payable (designated as current liabilities) will permit the ready determination of working capital. ##### [210-10-05-6](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:9ee2e70a99e77078803fe190f676b9c07f0a9e6e2da8ce570f4c92671ecb0024 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The ordinary operations of an entity involve a circulation of capital within the current asset group. Cash is expended for materials, finished parts, operating supplies, labor, and other factory services, and such expenditures are accumulated as inventory cost. Inventory costs, upon sale of the products to which such costs attach, are converted into trade receivables and ultimately into cash again. ##### [210-10-05-7](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:7f8fb3516452526cb229f8d7fdf387d23ddfc2e8e634d43b04346f10ab98bf70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph Not Used](https://asc.understandingaccounting.org/updates/page-1833002/) ##### [210-10-05-8](https://asc.understandingaccounting.org/asc/210/10/#210-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:58:22.180Z to 2026-09-09T22:58:22.180Z Record version: sha256:7f1f35e04ad9d9183a5589e5b8d839eddb14c44d570a7f317bee0b2ef30a3ea9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In addition to the classification guidance provided in this Subtopic, other Topics in the Codification also address specific classification matters.