FACULTY OF BUSINESS SCIENCES

SCHOOLACCOUNTING PROFESSIONAL

STATEMENT OF FINANCIAL POSITION

COURSE:

SUPERIOR ACCOUNTING

AUTHOR:

ALTAMIRANO RUIZ, MIGUEL ÁNGEL (0000-0001-5848-6259)

TEACHER:

MG. BARRUETO BRAMBILLA, MARIA YOLANDA

Chiclayo - Perú

(2023)
Content
I. INTRODUCTION ..................................................................................................................... 3
II. DEVELOPMENT ...................................................................................................................... 4
2.1 Definition ........................................................................................................................... 4
2.2 Fundamentals of the Statement of Financial Position: .............................................. 4
2.3 Importance ........................................................................................................................ 5
III. BIBLIOGRAPHY .................................................................................................................. 7

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 I. INTRODUCTION

The objective of this report is to provide a clear and concise view of the
statement of financial position and its importance in business management.
Tools and strategies will be presented for the preparation and analysis of
the statement of financial position, which will allow readers to understand its
importance in making business decisions.

With the regulatory obligation to present clear and reliable financial information,
the preparation of a Statement of Financial Position requires rigor and adherence to
established accounting principles. In this report, the elements that make up this
statement will be addressed in a precise and reasoned manner, providing a
comprehensive understanding of the entity's financial position.

According to Reategui (2021) It tells us that globally the effective management of

a business requires data collection, record keeping, reporting, analysis and
availability of accurate information related to assets, liabilities, debts, profits,
among other financial aspects. It is in this context that accounting emerges as a
crucial tool for any company, offering management data that reflects in detail the
financial situation of the organization.

In his research carried out by Vasquez (2021) was to highlight the impact and
relevance of the planning system in decision making. It was concluded that the
company lacks the necessary information to properly file taxes, resulting in the
lack of application of current tax regulations.

Avellaneda tells us (2020) Financial statements at the local level are structured
records that show the financial and economic performance of a company in a
specific period. They must be prepared following generally accepted
accounting principles, international financial reporting standards, international
accounting standards and specific internal regulations of each country.

It should be noted that, under current regulations, transparency and accuracy

3
are unavoidable imperatives in the presentation of financial information. Therefore,
this report will be structured based on the legal principles that govern accounting,
ensuring compliance with standards and providing a solid basis for informed
decision making.

II. DEVELOPMENT

2.1 Definition

It allows evaluating the solvency and financial stability of the entity. Through the
relationship between assets and liabilities, users can determine the entity's ability to
meet its short- and long-term obligations.

Definition of the Statement of Financial Position:

The Statement of Financial Position is an accounting report that presents the

financial position of an entity at a specific time. It contains three main sections:
assets, liabilities and net worth. The fundamental equation that governs it is:

Assets = Liabilities + Net Worth

2.2 Fundamentals of the Statement of Financial Position:

Assets:
They represent resources controlled by the entity as a result of past events and
expected to generate future economic benefits.
Classification of assets: current (short-term) and non-current (long-term).

Passives:
Present obligations of the entity, arising from past events, the fulfillment of which is
expected to result in an outflow of resources.
Classification of liabilities: current (short-term) and non-current (long-term).

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Net Worth:
It represents the residual interest in the entity's assets after deducting liabilities.
It includes share capital, retained earnings and other components of equity.

Cutoff date:
The information on the Statement of Financial Position is presented on a specific
date, known as the cut-off date. It is crucial to accurately reflect the financial position
at that time.
Compliance with Accounting Principles:

Preparation in accordance with accounting principles and regulations, such as

International Financial Reporting Standards (IFRS), to ensure consistency and
comparability.
Structured Presentation:
Organization in double entry form, where each transaction affects at least two
accounts, ensuring the integrity of the accounting equation.
Understanding these fundamentals is essential to effectively interpret and use the
information provided by the Statement of Financial Position in financial analysis and
decision making.

2.3 Importance

The Statement of Financial Position is a key tool in the accounting of a company

due to its importance in several fundamental aspects:

Reflects the financial situation at a specific point in time: Provides a snapshot of the
company's financial health at a given point in time. This is crucial for managers,
investors, creditors and others interested in understanding the current financial
position.

According to Cerna & Carlos (2018). Facilitates decision making: Allows managers
and directors to make informed decisions about investments, financing, expansion

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and other business strategies. It provides detailed information on assets, liabilities
and net worth, which is essential for short- and long-term financial planning.

Evaluates solvency and liquidity: Allows you to evaluate the company's ability to
meet its short-term financial obligations and its long-term solvency. Data on current
assets and current liabilities are essential to determine liquidity and the ability to pay
immediately.

Facilitates the analysis of capital structure: Reveals the proportion of debt and equity
financing. This is important to understand how the company is financed and whether
there is a healthy balance between debt and equity.

Likewise, Mendoza (2020) Helps in performance evaluation: By comparing the

financial statements of different periods, one can evaluate the performance and
efficiency of the company in managing its resources. In addition, it provides key
indicators to analyze profitability, such as return on assets or return on equity.

Transparency and regulatory compliance: It is essential to comply with accounting

and financial regulations. It provides transparent and detailed information that may
be required by regulators, investors and other interested parties.

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 III. BIBLIOGRAPHY

Avellaneda, P. (2020) ANALYSIS OF THE FINANCIAL STATEMENTS AND

DECISION MAKING OF THE COMPANY PLASTIMEDIC SCRL IN THE

YEAR 2019. UNIVERSIDAD PERUANA DE LAS

AMERICAS.https://repositorio.ulima.edu.pe/bitstream/handle/20.500.12724/

11834/Paredes_Estados-financieros.pdf?sequence=1&isAllowed=y

Cerna, N. & Carlos, D. (2018). FINANCIAL STATEMENTS AND THEIR IMPACT

ON FINANCIAL DECISION MAKING OF SMALL RURAL BUSINESSES IN

THE CAJAMARCA REGION. Peruvian University of Applied Sciences

(UPC), Lima, Peru. Retrieved

https://repositorioacademico.upc.edu.pe/handle/10757/623542

Mendoza, B. (2020) Analysis of the Economic and Financial Situation in the

Company AQUAMISTI SAC Arequipa - periods 2018 and 2019.

UNIVERSIDAD TECNOLOGICA DEL PERU (UTP) - Faculty of

Administration and Business

Accountinghttps://repositorio.utp.edu.pe/bitstream/handle/20.500.12867/34

50/Briggith%20Mendoza_Trabajo%20de%20Investigacion_Bachiller_2020.

pdf?sequence=1

Reátegui, C. (2021) FINANCIAL STATEMENTS, Faculty of Business and

Economic Sciences Accounting Career University of Lima
https://repositorio.ulima.edu.pe/bitstream/handle/20.500.12724/1183
4/Paredes_Estados-financieros.pdf?sequence=1&isAllowed=y

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Vasquez, N. (2021) ANALYSIS OF FINANCIAL STATEMENTS AND ITS IMPACT

ON DECISION MAKING - HOSTAL SANFERNANDO EIRL BAGUA

GRANDE. Edu.Pe. Retrieved November 20, 2023, from

https://tesis.ipn.mx/bitstream/handle/123456789/1947/207.pdf?sequence=1

&isAllowed=y