Statement of Financial Position: Fundamental of Accountancy, Business, and Management 2 ABM12
Statement of Financial Position: Fundamental of Accountancy, Business, and Management 2 ABM12
Statement of Financial Position: Fundamental of Accountancy, Business, and Management 2 ABM12
Assets Liabilities
Cash at bank 3 000 Creditors 5 000
Debtors 5 000 Loan 10 000
Stock 20 000 15 000
Office equipment 4 000
Vehicle 18 000 Owner’s equity
Capital – K. Wilson 35 000
Total assets $50 000 Total equities & $50 000
_______ liabilities _______
Narrative form statement of financial position
City Traders Co.
Statement of financial position
As of June 30, 2005
Assets
Cash at bank 3,000
Debtors 5,000
Stock 20,000
Office equipment 4,000
Vehicles 18,000
Total assets $50,000
Liabilities
Creditors 5,000
Loan (due 30/6/07) 10,000 15,000
Owner’s equity Capital – K. Wilson 35,000
Total equities $50,000
Classification in the Statement of
Financial Position
A classified statement of financial position separate both
assets and liabilities into those that are current and those that
are non-current.
The assets are usually classified according to their liquidity,
which is how quickly they are expected to be turned into
cash or used up.
Liabilities are classified on the basis of the urgency of
repayment.
Assets
Current assets: Assets that are expected to be realised in
cash or used up within the next 12 months. Current assets
include cash on hand, cash at bank, short-term investments,
inventory, debtors.
Line items under current assets:
Cash or Cash Equivalent
Financial assets at fair value such as trading securities and other
investments in a quoted equity instruments
Trade and other receivables
Inventories
Prepaid Expense
Non-current assets: Assets that are acquired with the
intention of controlling them for a period of time greater
than 12 months. Non-current assets include property,
equipment, machinery, furniture, vehicles, long-term
investments
Line items under non-current assets
Property, plant and equipment
Long-term investments
Intangible assets
Other non-current assets
Liabilities
Current liabilities: obligations that will be satisfied within
the next 12 months. Current liabilities include bank
overdrafts, short-term loans, creditors.
Line items under current liabilities:
Trade and other payables
Current provisions
Short term borrowing
Current portion of long term debt
Current tax liability
Non-current liabilities: obligations that are deferred over
a period greater than 12 months. Non-current liabilities:
include long-term loans.
Line items under non-current liability
Non-current portion of a long term debt
Finance lease liability
Deferred tax liability
Long term obligations to company officers
Long term deferred revenue
Equity
Philippine Term IAS Term
Capital stock Share capital
Subscribed capital stock Subscribe share capital
Common stock Preference share capital
Additional paid capital Ordinary share capital
Retained earning (deficit) Share premium
Retained earning appropriated Accumulated profits (Losses)
Revaluation surplus Appropriation reserve
Treasury stock Treasury share
T-form statement of financial position
City Traders Co.
Statement of financial position
As of June 30, 2005
Multiple-step/ Functional
Divided into separate sections, various subtotals are reported.
Involves separate sections for gross profit, operating income, other
income/losses, income before income taxes, and net income
Also known as Cost of Sales Method
Gross Sales 9,300,000 Interest expense on bank loan 50,000