statement of Financial Position

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STATEMENT OF FINANCIAL POSITION
LESSON 1

2. ASSETS
01
LIABILITY
02
EQUITY
03
EXPENSES
INCOME
04
05
ELEMENTS OF SFP

3. WHAT IS STATEMENT OF FINANCIAL POSITION
✔ Owner’s equity- what the
business is worth
✔ Liabilities-what the business
own and claims
✔ Assets-what the business owns
SFP is also called Balance
SheetIt reports the permanent accounts as of the end of
an accounting period.
For example, on this specific
date, December 31, 20x5, the
statement of financial position
reports the assets, liabilities,
and owner’s equity.

4. Accounting
Equation
Assets= Liabilities + Owner’s Equity
Assets- Liabilities= Owner’s Equity

5. It is a resource controlled by the enterprise as a result of past events and
from which future economic benefits are expected to flow to the enterprise.
Assets

6. It is a present obligation of he enterprise arising from past events. The
settlement of which is expected to result in an outflow of resources from the
enterprise embodying economic benefits..
Liabilities

7. It is the residual interest or remainder of the asset of the enterprise after
deducting all its liabilities.
Equity

8. These are increases in economic benefits during the accounting period in
the form of inflows or enhancements of assets or decreases of liabilities that
results in increases in equity; other than those relating to contributions from
equity participants.
Income

9. Thee are decreases in economic benefits during the accounting period in the
form of outflows or depletions of assets or incidences of liabilities that results
in decreases in equity; other than the those relating to distribution to equity
participants.
Expenses

10. Assets
1
2
3
4
5
6
.
Investments and investment property
.
inventories
Cash and cash equivalents Trade and other receivables
Biological assets
Property, plant and equipment

11. Liabilities
1
2
3
4
5
6
.
.
Financial liabilities
Trade and other payables Provisions
Liabilities for taxes

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