9609 · 10.1.2
Statement of financial position
9609 A Level — assets, liabilities, equity, accounting equation, and financial position analysis.
Need to know
What you need to know
- Provides a financial 'snapshot' on a specific date (e.g., 'as at 31 December 2023').
- Formally lists a company's assets, liabilities, and equity.
- Also known as the Balance Sheet, as it must always balance.
- Essential for analysis by both internal (management) and external (investors, banks) stakeholders.
Explanation
Statement of financial position
- Provides a financial 'snapshot' on a specific date (e.g., 'as at 31 December 2023').
- Formally lists a company's assets, liabilities, and equity.
- Also known as the Balance Sheet, as it must always balance.
- Essential for analysis by both internal (management) and external (investors, banks) stakeholders.