Balance sheet
The balance sheet is a financial report where assets, equity, and liabilities are summed up at a given time, usually in connection with financial statements.
What is Balance?
For an insurance company, balance can be an index that you measure the premium volume against. For a customer, balance can for example be the difference between paid premium (debits) and the amount of money (credits) left on your account at given time.
What is Derivative in a balance sheet?
Derivative is a collective name for financial products based on an underlying asset. Some common examples are futures, options, warrants and swaps. What characterizes derivatives is that the value often changes much faster compared to traditional securities. The assets that may be linked to derivative products include shares, bonds, commodities and currencies.