Acca financial Accounting (FA) Study Text ac ca (FA)

the statement of financial position

 

This statement summarises the assets, liabilities and equity balances of 

the business at the end of the reporting period.  

Classification or grouping of assets, liabilities and equity in a consistent 

manner helps users of financial statements to understand that information 

and it more easily identify information which is of particular relevance to 

them. Consistent presentation of information also helps users to make 

comparison and undertake analysis of financial information.  

A specimen statement of financial position, including hypothetical 

monetary amounts is illustrated below.