Statement of financial position
The statement of financial position reports recognised assets, liabilities and equity at a specific date. Classify assets and liabilities as current or non-current where the applicable presentation basis requires it, and present the components of equity. The accounting equation provides an arithmetic check: assets equal liabilities plus equity at the reporting date. The statement is prepared at a date, usually the end of the reporting period.
Worked example
Assets 500 less liabilities 200 leave equity 300.
Common mistake
It is a snapshot and does not measure every resource or the market value of the whole business.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | FR | Direct | Official assessment-window verification pending |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | F1 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Balance sheet