The document provides information about a financial position statement, including: 1) It defines a financial position statement as a balance sheet that assesses an entity's financial soundness in terms of liquidity, financial, credit, and business risk. 2) Assets and liabilities are classified as current or non-current based on whether they are expected to be realized within one year. 3) Components of the financial position statement include current and non-current assets like cash, receivables, and property, as well as current and non-current liabilities like payables and loans. Equity represents the residual interest of the owners.

1. ACCT 11
Module Title: FINANCIAL POSITION
Developer: Mrs. Sarah Joy D. Martin
Materials: Eugene A. Ruano, CPA

2. SPECIFIC LEARNING
1
Discussed the Statement in Financial
Position
2 Differentiate the Classification of
Components
3 Perform the Statement in Financial
Position

3. 1 Definition of Financial Position
2 Classification of Components
3 Purpose and Importance
3 Illustration

4. Statement of Financial
Position
also known as the Balance Sheet
helps users of financial statements to assess the
financial soundness of an entity in terms of liquidity
risk, financial risk, credit risk and business risk

5. COMPONENTS
ASSETS
something that an entity owns or controls in order to derive
economic benefits from its use.
must be classified in the balance sheet as current or non-current
depending on the duration over which the reporting entity
expects to derive economic benefit from its use.
An asset which will deliver economic benefits to the entity over
the long term is classified as non-current whereas those assets
that are expected to be realized within one year from the
reporting date are classified as current assets.

6. COMPONENTS
ASSETS : CLASSIFICATION
Tangible & intangible:
Non-current assets with physical substance are classified as property, plant and
equipment whereas assets without any physical substance are classified
as intangible assets. Goodwill is a type of an intangible asset.
Inventories
balance includes goods that are held for sale in the ordinary course of
the business. Inventories may include raw materials, finish goods and
works in progress.

7. COMPONENTS
ASSETS : CLASSIFICATION
Trade Receivables
Trade receivables include the amounts that are recoverable from customers
upon credit sales. Trade receivables are presented in the statement of financial
position after the deduction of allowance for bad debts.
Cash and Cash Equivalents
Cash and cash equivalents include cash in hand along with any
short-term investments that are readily convertible into
known amounts of cash.

8. COMPONENTS
ASSETS : CLASSIFICATION
Current: within a year Non Current: long term
Current
Current
Current
Non Current
Non Current
Non Current

9. COMPONENTS
LIABILITIES
obligation that a business owes to someone and its settlement
involves the transfer of cash or other resources.
must be classified in the statement of financial position as current
or non-current depending on the duration over which the entity
intends to settle the liability.
A liability which will be settled over the long term is
classified as non-current whereas those liabilities that
are expected to be settled within one year from the
reporting date are classified as current liabilities.

10. COMPONENTS
LIABILITIES : CLASSIFICATION
Trade and other Receivables
primarily include liabilities due to suppliers and contractors for credit purchases.
Sundry (expenses that are small in amount and rare in occurrence) payables
which are too insignificant to be presented separately on the face of the balance
sheet are also classified in this category.
Short Term Borrowing
typically include bank overdrafts and short term bank loans
with a repayment schedule of less than 12 months.

11. COMPONENTS
LIABILITIES : CLASSIFICATION
Long Term Borrowing
comprise of loans which are to be repaid over a period that exceeds
one year. Current portion of long-term borrowings include the
installments of long term borrowings that are due within one year of
the reporting date.
Current Tax Payable
usually presented as a separate line item in the statement of financial
position due to the materiality of the amount.

12. COMPONENTS
LIABILITIES : CLASSIFICATION
Current: within a year Non Current: long term
Non Current
Currentt
Non Current

13. COMPONENTS
EQUITY
what the business owes to its owners.
derived by deducting total liabilities from the total
assets.
Therefore represents the residual interest in
the business that belongs to the owners.

14. COMPONENTS
EQUITY : CLASSIFICATION
Share Capital
represents the amount invested by the owners in the entity
Retained Earnings
comprises the total net profit or loss retained in the business
after distribution to the owners in the form of dividends.
Revaluation Reserve
contains the net surplus of any upward revaluation of property,
plant and equipment recognized directly in equity.

16. E. Mortiz, lawyer
STATEMENT OF FINANCIAL POSITION
March 31, 2019
REF ACCOUNTS TITLE AMOUNT
ASSETS
100
CURRENT ASSETS
NON CURRENT ASSETS
LIABILITIES
200
CURRENT LIABILITIES
NON CURRENT LIABILITIES
EQUITY
300
TOTAL ASSETS
TOTAL LIABILITIES
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY

18. E. Mortiz, lawyer
STATEMENT OF FINANCIAL POSITION
March 31, 2019
REF ACCOUNTS TITLE AMOUNT
ASSETS

19. E. Mortiz, lawyer
STATEMENT OF FINANCIAL POSITION
March 31, 2019
REF ACCOUNTS TITLE AMOUNT
LIABILITIES

23. END OF PRESENTATION