9609 · 10.1.2
Statement of financial position
The **statement of financial position** (10.1.2) pairs with **10.1.1** — profit affects **retained earnings** in equity. Examiners test **classification** (current vs non-current) and **missing figure** calculations using the accounting equation.
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.