STATEMENT OF

FINANCIAL POSITION
STATEMENT OF FINANCIAL POSITION
The statement of financial position (SFP) is
a statement that gives the financial condition of a
business as of a given date. The SFP is another
name for the balance sheet. It reports the permanent
accounts as of the end of accounting period.
01
ELEMENTS OF
FINANCIAL
POSITION
ELEMENTS OF STATEMENT OF
FINANCIAL POSITION
1. Assets are resources controlled by the enterprise
as a result of past events and from which future
economic benefits are expected to flow to the
enterprise.
ELEMENTS OF STATEMENT OF
FINANCIAL POSITION
2. Liability are present obligations of the enterprise
arising from past events. The settlement of which is
expected to result in an outflow of resources from the
enterprise embodying economic benefits.
ELEMENTS OF STATEMENT OF
FINANCIAL POSITION
3. Owner’s Equity refers to the investment or equity
of the owner in the business.
 02
FORMAT FOR
STATEMENT
OF FINANCIAL
POSITION
FORMAT FOR STATEMENT OF
FINANCIAL POSITION
A. The Heading
1. Name of the Business
2. Title of the Report
3. Date of the Report (specific date)
B. The Asset Section
C. The Liabilities Section
D. The Owner’s Equity Section
 03
CLASSIFYING
ASSETS AND
LIABILITIES
CLASSIFYING ASSETS AND LIABILITIES
1. Current Asset
Current assets will be converted to cash, sold,
or used up bring during the next 12 months or within
the business’ operating cycle if the cycle is longer
than a year.
CLASSIFYING ASSETS AND LIABILITIES
2. Long-Term Asset
Long-term assets are all assets other than
current assets. One category of long-term assets is
plant assets (also called fixed assets or property,
plant, and equipment).
CLASSIFYING ASSETS AND LIABILITIES
CLASSIFYING ASSETS AND LIABILITIES
3. Current Liabilities
Current liabilities must be paid with cash or with
goods and services within a year or within the
entity’s operating cycle if cycle is longer than a year.
CLASSIFYING ASSETS AND LIABILITIES
4. Long-Term Liabilities
All liabilities that are not current are classified
as long-term liabilities. Many notes payable are
long-term.
CLASSIFYING ASSETS AND LIABILITIES
 04
CLASSIFIED
BALANCE
SHEET
CLASSIFIED BALANCE SHEET
There are two balance sheet forms, namely –
report form and account form.
1. Account Form lists the assets at the left and the
liabilities and the equity at the right.
2. Report Form lists the assets at the top and the
liabilities and owner’s equity below.
Account Form
Report Form
 05
POST-CLOSING
TRIAL BALANCE
POST- CLOSING TRIAL BALANCE
Notice that the accounts and amounts in the
post- closing trial balance is the same as those in
the statement of financial position.
POST- CLOSING TRIAL BALANCE
THANK YOU!
 ACTIVITY ON
STATEMENT OF
FINANCIAL POSITION
ACTIVITY: STATEMENT OF FINANCIAL
POSITION
Sasha Consulting showed an improperly
arranged adjusted trial balance as of December 31,
2020. You are requested to prepare a Statement of
Financial Position in both account form and report
form.
 26,880

76,880

Account Form
 26,880

76,880

₱319,900

Report Form
THANK YOU!