What are the limitation of the conventional balance sheet?

The conventional balance sheet has several limitations, including its focus on historical cost, which may not accurately reflect the current market value of assets and liabilities. It provides a snapshot of a company's financial position at a specific point in time, making it less useful for assessing long-term performance or trends. Additionally, it often excludes intangible assets like brand value and intellectual property, which can be significant for many companies. Finally, it does not account for off-balance-sheet items, potentially leading to an incomplete view of a company's financial health.