Chapter 25

Statement of Financial Position- SMEs

Components of Financial Position

• Statement of Financial Position

• Statement of Comprehensive Income-
• Statement of Changes in Equity-
• profit or loss
• payment of Dividends
• prior period errors
• hanges in accounting policy
• Statement of Cashflows
• Notes to FS-
Comparison with full PFRS
Full PFRS
• single statement of Comprehensive
income and retained earnings is
NOT PERMITTED
• Statement of Changes in Equity is
always Required
• the third statement of financial
position as of the beginning of he
earliest comparative period shall be:
– applicaion of accounting policy
retrospectively;
– when an entity makes a retrospective
restatement; and
– when the item is reclassified in the FS
PFRS for SMEs
• single statement of
Comprehensive income is
permitted but not required to
present a single statement of
Comprehensive income and
retained earnings
• the third statement of financial
position is not required.
• no requires format for FS,
however there is a required line
items such as:
a. Cash and Cash Equivalents
b. Trade and other Receivables
c. Financial assets, excluding amonts shown under letters a,b,j & k
d. Inventories
e. PPE
f. Investment property (@Cost-AD & Impairment)
g. Intangible Assets (@FV-COD)
h. Biological Assets carried @:
– Cost-AD & Impairment
– FVTPL
i. Investment in:
– Associate
– Joint venture
j. Trade & Other Payables
k. Financial Liabilities excluding amonts shown under letters l & P
l. Current tax asset & current liability
m.DTA and DTL
n. Provisions
shall disclose either in SFP or Notes to FS the following
sublassification
• PPE: • Trade and Other • Inventory • Trade & Other
– Land Receivables • Raw Materials Payables
– machinery • trade receivabes • Work-in-Process • Bank Overdraft
– boats • receivable from • Finished Goods • Trade Payables
related parties Inventory • Interest Payabl
– aircrafts
• accrued income • Current tax Liability
– motor vehicles
– furnitures and fixtures
– office equpment • Provisions • Equity
• Short term Emp. • Share Capital
Benefits
• RE
• other long term
benefits-current • Unrealized Gain on cash flow
• product warranties hedge
• Equity attributable to parent
• Non contolling interest