The statement of affairs 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; one such situation includes the calculation of a company’s total cost thus making the insolvency process much easier. In other words, a statement of affairs can be termed as the financial summary of any business at a particular time. If a company goes bankrupt, liquidation of assets becomes a huge headache; here is when a statement of affairs comes in handy. Banks often ask for the statement of affairs while resolving the assets. This document provides useful information to solve certain legislative issues and can be presented in the court. Financial department in any company with the help of financial experts are liable to generate the statement of affairs.
A statement of affairs can be made in a number of different formats; few basic sections must be included in whatever layout you choose for this piece of document. 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. 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. 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.