1

could anyone explain to me, in this balance sheet, which items are assets, which items are liability, and which items are equity?

Are funding debt and Notes issued liability?

Is redeemable convertible preferred stock equity?

I just feel Assets != Equity + Liabilities here. Thanks enter image description here

2

Are funding debt and Notes issued liability?

Yes

Is redeemable convertible preferred stock equity?

Yes and No - from an accounting standpoint it is equity because it represents ownership (and shows up in the equity section of the balance sheet). However, financial analysts often value it like debt since it's typically bought for its fixed payout, not for its capital appreciation.

Note that the numbers you show don't balance in any combination - I suspect that the lines you show are a subset of the overall balance sheet and not intended to "balance".

7
  • Thanks. I do show the complete form. This is from "affirm" S1 report. The link is here: investors.affirm.com/static-files/… It is on page 80. Jan 14 at 21:24
  • @JerryZhang I didn't mean to imply that you edited the data - I meant that the table is not a full balance sheet and does not balance - it's under "SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA"
    – D Stanley
    Jan 14 at 21:35
  • You can find more detail on page F-4 of that report.
    – D Stanley
    Jan 14 at 21:37
  • Thanks for pointing out this. I need to read the complete balance sheet. Jan 14 at 21:39
  • Thanks. But even on page F-4, the numbers do not add up. For example, for the period ending on June 30, 2020, total assets is $1,402,251, Total liabilities is 965,177 and Total stockholders’ deficit is (367,096). Assets != Equity + Liabilities Jan 14 at 21:48

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