Sue-Lynn Carty, explains that A balance sheet and a statement of financial position (SOP) are both accounting statements that illustrate a corporation’s assets and liabilities, but in different formats. For-profit businesses most commonly use the balance sheet format and non-profit businesses most commonly use the statement of financial position format.”
This really means that we should all understand which format to use when reporting finances because the format determines the name of the document and the type of the organization regardless of the contents. So who determines the format? I have no idea.
Still searching and wondering if there is trully any difference between these two. But I’ve concluded what actually matters is the numbers presented and the validity of those numbers.
Have a financial forward day!