On a non-U.S. balance sheet, what is the first item usually listed?

In a non-U.S. balance sheet, the first item typically listed is not working capital. Instead, balance sheets in many countries align with International Financial Reporting Standards (IFRS) and usually begin with current assets. Current assets are prioritized because they indicate the liquidity of a company and provide insight into its short-term financial health.

Current assets encompass cash and other resources that are expected to be converted into cash or used up within one year. This category includes accounts receivable, inventory, and other assets that can be readily liquidated.

The concept of working capital represents the difference between current assets and current liabilities, but it is not a line item on the balance sheet itself and may be referred to in analysis rather than displayed as a distinct category in the financial statements. Consequently, the common practice among non-U.S. companies is to begin with current assets to provide stakeholders with immediate information regarding the company's short-term resources.