Opening balance sheet definition
/What is an Opening Balance Sheet?
An opening balance sheet contains the beginning balances at the start of a reporting period . These balances are usually carried forward from the ending balance sheet for the immediately preceding reporting period. If a business has just begun, then the opening balance sheet will contain no account balances at all, or perhaps the equity contributions (and offsetting cash balances) of investors .
Opening balance sheet information is also needed for a budget that formulates balance sheets for future periods, so that ending balances from the last actual period are incorporated into the ongoing balance sheet calculations.