A Statement as of a Date
A dated view of assets, liabilities, estimated income taxes, and net worth, supported by related notes.
The Deliverable
A Statement of Financial Condition organizes relevant financial information under the applicable reporting framework as of a specific date and includes related notes.
Within the agreed scope, the statement is prepared under U.S. generally accepted accounting principles for personal financial statements and the professional standards of the American Institute of Certified Public Accountants. It speaks as of a single stated date.
What the Statement Contains
- Assets at estimated current value.
- Liabilities at estimated current amount.
- Estimated income taxes on differences between the reported amounts of assets and liabilities and their tax bases.
- Notes explaining significant amounts and valuation approaches.
From many records to one statement
Aurora brings together information held by you and your existing advisors to prepare a Statement of Financial Condition with related notes. The result is a clear, supportable reference for forms, tax planning, advisor conversations, and ongoing reporting.
Information already exists
Establishes ownership and what is includible
- Ownership records
- Entity records
- Trust and estate documents
- Account statements
Establishes estimated current value
- Real estate appraisals
- Business valuation reports
- Investment manager reports
Establishes amounts owed
- Loan documents and guarantees
- Banking records
Establishes tax basis
- Tax records and tax-basis information
Organized and prepared by Aurora
Statement of Financial Condition
A Statement of Financial Condition presents assets, liabilities, estimated income taxes, and net worth as of a specific date.
Assets minus liabilities minus estimated income taxes equals net worth.
Select a line to see what it contains and which records prepare it
- Net worth What remains The resulting financial position as of the statement date. It is what remains after estimated income taxes have been deducted, not before them, which is why it is usually lower than a net-worth figure taken from assets and debts alone.
- Related notes Prepared with the statement, not separate from it Related notes explain significant amounts, describe relevant valuation methods, and address guarantees, commitments, and contingencies where applicable. For a material investment in a closely held business, they also give its name, the percentage owned, the nature of the business, and summarized financial information for the most recent year.
Ready to support
- Third-party forms Statement information organized into the requesting party’s format, where the engagement letter includes it
- Planning A starting point for tax planning and advisor conversations
- An ongoing financial reference A baseline for the next request or reporting date
OptionalQuarterly reporting
A separate service, elected and defined in the engagement letter. Where it is elected, updated client and advisor information refreshes the statement each quarter. A one-time request does not require quarterly reporting.
Statement of Changes in Net WorthThis statement reconciles beginning and ending net worth and separates realized activity from changes in asset values, liabilities, and related estimated taxes. It is optional in a one-time engagement and included with each scheduled quarterly package after the baseline statement has been established.
Scope and limitations
Illustrative diagram. No client data appears here, and the statement is prepared only after Aurora and the client have agreed on scope and records. Which records inform which line depends on the engagement and the holdings.
Format assistance applies where the engagement letter expressly includes it, and the client or counsel remains responsible for representations, signatures, and submission. Each requesting party applies its own format, current-date requirements, and supporting-information standards. Depending on the asset, filing, and purpose, separate qualified appraisals or other valuation support may be required, and a prepared statement does not replace a required lender form or court disclosure.
When It May Be Useful
- A lender, banker, attorney, trustee, or advisor has requested a personal financial statement.
- Financing, refinancing, or a bonding review.
- Estate or trust work, divorce, prenuptial planning, or another legal need, coordinated through counsel where appropriate.
- A business or property transition, succession, or gifting.
- Retirement or inheritance planning conversations with your advisors.
- A professionally prepared current financial picture on your own initiative, with no outside request pending.
A new statement can be prepared when another need arises, or quarterly reporting can keep the information current. A statement also gives tax planning an organized starting point.
Optional Statement of Changes in Net Worth
The Statement of Financial Condition answers where things stand on a specific date. When the engagement also needs to explain the period, Aurora can prepare an optional Statement of Changes in Net Worth. It reconciles beginning and ending net worth and distinguishes realized changes—such as income, realized investment gains, taxes, and personal expenditures—from unrealized changes in asset values, liabilities, and related estimated taxes. It is the personal-financial-statement counterpart to an income statement, but it is included only when selected in the written scope.
Third-Party Forms
Aurora evaluates any required form before accepting the engagement. Assistance with that form is included only when expressly accepted in writing after that evaluation. Any certification, oath, or filing remains the responsibility of the client or counsel unless Aurora separately accepts it in writing.
Significant Values and Specialist Reports
Aurora does not perform business valuations or appraisals. For hard-to-value holdings, Aurora may use reports and information from your existing appraisers, valuation specialists, and investment managers, with your authorization. The notes describe the valuation approach and identify a specialist report when relevant.
See how an engagement works, or start with a brief conversation about the date and intended use.