Legal Definitions - statement of condition

A statement of condition is also known as a balance sheet. It is a financial statement that shows the current financial position of an entity. This statement discloses the value of the entity's assets, liabilities, and owners' equity.

For example, if a company has $100,000 in assets, $50,000 in liabilities, and $50,000 in owners' equity, the statement of condition would show these values. This statement is important because it helps investors and creditors understand the financial health of the entity.

The statement of condition is different from the income statement, which shows the entity's revenue and expenses over a period of time. The statement of condition is a snapshot of the entity's financial position at a specific point in time.