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FAQ

CaseWare Working Papers | How do I balance my Statement of Financial Position (Balance Sheet) and / or Statement of Cash Flow?

Published:  23/11/2016

Before attempting to balance the financial statements, you should check 3 things first: 

  1. The Information Store is completed
  2. The Working Trial Balance balances
  3. All accounts have been mapped


If your CaseWare file has been rolled forward from the previous year and there are new accounts to be mapped; the latest template will show this on the balance check. To see these accounts and map them, double-click on the red triangle. This will take you to the “Assign Mapping Numbers” screen.

Now that your Trial Balance is fully mapped, navigate back to Caseview to go back to your Financial Statements. The Financial Statements will be recalculated and the balancing difference from unmapped accounts will disappear. 

Balance sheet

  1. Balancing differences normally occur as a result of incorrect mapping and/ or rounding differences. Lets first look at how you can address this by looking at rounding differences by placing focus on:
    -    Rounding in the Statement of Financial Position (Balance Sheet)
    -    Eliminating significant differences in the Statement of Financial Position due to incorrect mapping
  2. In some instances, the Statement of Financial Position will be slightly out of balance. This is because the line items in the statement are all rounded off to the nearest currency unit (like Rands, Dollars or Naira) that excludes cents. If the Trial Balance is imported with cents these differences are unavoidable. To eliminate these differences in the Statement of Financial Position, you can switch on the rounding configuration 
  3. To switch on the rounding configuration, click on Document | Configuration | Rounding. 
  4. Select the checkbox to switch on Automatic Rounding. 
    • Set the limit for rounding from the drop down list. This limit is interpreted with the rounding relation selected under Options|Rounding. For example, a limit of 15 will automatically round off differences of up to R15 in the SOFP if “R1” is selected under the rounding relation.  Note that the rounding difference has to be lower than the rounding limit for the automatic rounding to be applied.
    • Lastly, select the account that these differences must be posted to, to complete your rounding settings.  Click “OK” to save these settings.
  5. As mentioned, if the rounding difference is less than the rounding limit, the Statement of Financial Position will be rounded to zero and the balancing indicator will turn green. 
 

Statement of cash flows

  1. Recommend: Import three comparative periods as this removes the need to manually input prior year movements and normally results in a balanced Statement of cash flows. 
  2. The asset notes is the main contributor for first time balancing of the Cash flow statement 
  • Additions and disposal columns affect the balancing of cash flows 
  • Ensure that all the asset notes are correctly balanced and that all movement values have been entered correctly and that there are no undefined differences in these notes
  1. Movements in investments in subsidiaries, joint ventures and associates either through business combinations, investments or business divestitures require the note to be completed before the Statement of cash flows will balance. 
  2. Discontinued operations is another line item that require the note to be completed before the cash will balance. 
  3. Check that all the notes to the cash flow statement have been completed. 
  4. The cash flow worksheet is provided as a tool that will unpack every value calculated in the cash flow statement 
  • Right click on any value in the Statement of cash flows and select “Jump to cash flow worksheet” 
  • Expand the line items and you will be able to view the underlying makeup of the balance as reflected in the Statement of cash flows 
  1. If the templates have been edited by yourself in any way, check that the calculations and inputs are correct. 

  Instructions:

My Statement of Financial Position (Balance Sheet) and/or Statement of cash flows is not balancing. What can I do to resolve this?   
 
 
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