Chapter 1 - Statement of Financial Position
Chapter 1 - Statement of Financial Position
Chapter 1 - Statement of Financial Position
Accountancy,
Business &
Management 2
The learners shall be able to
1. identify the elements of the SFP and describe each of them.
4. prepare an SFP using the report form and the account form
with proper classification of items as current and noncurrent.
1. Statement of Financial Position
2. Income Statement/Statement of Comprehensive
Income
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes, comprising a significant accounting policies
and other explanatory information
Responsibility for
financial statement
The management of an
entity has the primary
responsibility for the
preparation and
presentation of financial
statements.
1.
Statement of
Financial
Position
Assets, Liabilities and Equity
1. What is Statement of Financial
Position?
2. How the other financial statements
are linked to the SFP?
STATEMENT OF
FINANCIAL POSITION
Is a formal statement showing the three
elements comprising the financial
position.
Interrelationships among the
Financial Statements
The income statement and the statement of owners equity are interrelated.
The balance sheet and the cash flow statement are interrelated.
Owners Drawings
Increase Decrease
Debit Credit
Normal
Balance
NORMAL BALANCES REVENUES AND EXPENSES
Revenues
Decrease Increase
Debit Credit
Normal
Balance
Expenses
Increase Decrease
Debit Credit
Normal
Balance
TWO
ACCEPTABLE
FORMATS
ACCOUNT FORM
REPORT FORM
Thanks!
Any questions?
You can find me at facebook RUBEN SOSING LEYBA
CONTACT NO. 09163131801
1. The SFP provides readers with the
information as to the companys