STATEMENT OF FINANCIAL POSITION

A financial statement that provides a summary of a company’s assets (resources owned), liabilities (obligations owed), and equity (net assets after deducting liabilities) as of a specific date.

Shows the assets, liabilities, and Equity (capital) of the business at a specific point in time.

1. Assets – Resources controlled by the business from which future economic benefits are

expected. Assets are classified as:

• Current Assets – intended to be realise the asset within 12 months of reporting

(converted to cash) or intends to sell or consume it, in the entity’s normal

operating cycle or it is held primarily for trading purposes, or the asset is cash or

a cash equivalent e.g., inventory, receivables, short-term investments, bank, cash,

prepayments

• Non-current Assets – A firm can identify all other assets as non-current.

(Intended to be used for more than one year) e.g., land, building, fittings, motor

vehicles, investments. NCA is disclosed at NBV

2. Liabilities – debts owing by the business. Liabilities may be classified as:

• Current liabilities –Current Liabilities: Obligations expected to be resolved within the regular operating cycle, used primarily for business operations, or due for payment within a short timeframe. (paid within one year) e.g., payables,

overdraft, current portion of loans, accrued expenses, dividend payable, taxes

payable

• Non-current liabilities – all other liabilities are non-current (paid after one year)

e.g., debentures, long-term loans, mortgages, bonds payable

3. Equity - An entity with share capital shall disclose the following, either in the statement

of financial position or in the notes:

(a)

for each class of share capital:

(i) the number of shares authorized.

(ii) The total number of shares that have been issued and fully paid, as well as those that have been issued but not fully paid.

(iii) The par value of each share, or confirmation that the shares do not have a par value.

(iv) Reconciliation of Shares which is a comprehensive breakdown detailing the number of shares outstanding at the start and end of the reporting period, including any changes due to issuance, repurchase, or other adjustments.

(v) The rights, preferences, and restrictions associated with that class of shares, including limitations on dividend distributions and capital repayment.

(vi) Shares owned by the entity, its subsidiaries, or affiliates.

(vii) Shares that are designated for issuance under options and contracts for share sales."

(b) a description of each reserve within equity.

FORMAT FOR STATEMENT OF FINANCIAL POSITION

Business Name

Statement of Financial Position

As at _