Statement of Financial Position

A (Consolidated) Statement of Financial Position (a.k.a. 'Balance Sheet') is a Financial statement of assets, liabilities and capital ('Equity') of a business or organization at the end of a given date. The primary purpose of the (Consolidated) Statement of Financial Position is to provide insights in a business's financial standing: What it owns ('Assets') and what it owes ('Liabilities' and 'Equity').

A key (balancing) principle of a Statement of Financial Positions is:

Assets = Liabilities + Equity


  • Assets = All current and long-term assets
  • Liabilities = All current and long-term liabilities
    • Current liabilities: Payables (interest, rents, utilities, taxes, wages)
    • Long-term liabilities: Long term debt to acquire capital (loans, bonds), Pension fund liability, Deferred taxes
  • Equity = All forms of owner, shareholder equity
    • Retained earnings, unissued stock certificates

Alternative names for Statement of Financial Position include: Consolidated Statement of Financial Position, Balance Sheet.

Related Financial Statements include: Statement of Comprehensive Income, Statement of Cash Flows, Statement of Changes in Equity.

Illustrative Example

A typical Statement of Financial Position consists of the following:

Statement of Financial Position




  Non-current Assets
    Property, Plant And Equipment 350,700 360,020
    Goodwill 80,800 91,200
    Other Intangible Assets 277,470 227,470
    Investments in Associates 100,150 110,770
    Investments in Equity Instruments 142,000 156,000
  Total Non-current Assets 901,620 945,460
  Current Assets
    Inventories 135,230 132,500
    Trade Receivables 91,600 110,800
    Other Current Assets 25,650 12,540
    Cash and Cash Equivalents 312,400 322,900
  Total Current Assets 564,880 578,740
Total Assets 1,466,500 1,524,200
Equity and Liabilities
    Share Capital 650,000 600,000
    Retained Earnings 243,500 161,700
    Other Equity 10,200 21,200
  Total Equity 973,750 831,500
    Non-current Liabilities
      Long-term Borrowings 120,000 160,000
      Deferred Tax 28,800 26,040
      Long-term Provisions 28,850 52,240
    Total Non-Current Liabilities 177,650 238,280
    Current Liabilities
      Trade And Other Payables 115,100 187,620
      Short-term Borrowings 150,000 200,000
      Current Portion of Long-term Borrowings 10,000 20,000
      Current Tax Payable 35,000 42,000
      Short-term Provisions 5,000 4,800
    Total Current Liabilities 315,100 454,420
  Total Liabilities 492,750 692,700
Total Equity and Liabilities 1,466,500 1,524,200

Example based on IFRS Taxonomy Illustrative Examples Asset Efficiency FAR


AEAsset Efficiency0AE


APAccounts PayableAP
ARAccounts ReceivableAR
FGFinished GoodsFG
IAS01IAS 1 Presentation of Financial StatementsIAS01
IAS36IAS 36 Impairment of AssetsIAS36
IAS37IAS 37 Provisions, Contingent Liabilities & Contingent AssetsIAS37
IFRS10IFRS 10 Consolidated Financial StatementsIFRS10
IFRS13IFRS 13 Fair Value MeasurementIFRS13
IFRS16IFRS 16 LeasesIFRS16
IFRS07IFRS 7 DisclosuresIFRS07
IFRSInternational Financial Reporting StandardsIFRS
PP&EProperty, Plant & EquipmentPP&E
RMRaw MaterialRM
WCWorking CapitalWC
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Balance Sheet, Statement, Financial, Position, Asset, Liability, Capital, Finance & Accounting The financial statement of assets, liabilities and capital of an enterprise (a.k.a. 'Balance Sheet')