Statement of Financial Position

Hi,

Can anyone help me with the statement of F/P. I understand what it is and how it achieves the answer however I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

Answers

  • BenABenA Registered Posts: 54
    When trying to remember what goes where think back to the accounting equation.
    Assets-Liabilities=Equity or Assets=Equity+Liabilities (This is the order of the SoFP)

    Assets
    When trying to remember what goes where think back to the accounting equation.
    Assets-Liabilities=Equity or Assets=Equity+Liabilities (This is the order of the SoFP)

    Assets
    Current
    Non-Current

    Equity


    Liabilities
    Non-Current
    Current

    When filling in the statement use process of elimination. Fill in the gaps you know i.e. you know Share capital is equity, PPE is an non-current asset, inventories, trade receivables and cash are all current. If there are any headings left to insert you eliminate the ones you know it isn't.

    As for there being 3 columns, are you able to provide a link or screenshot? I have only came across three columns in situations as follows

    ASSETS
    Non-Current Assets
    PPE________________________________________________£100,000

    Current Assets
    Inventories____________________£50,000
    Trade and Other Receivables_____£75,000
    Cash and Cash Equivalents______£30,000_________________£155,000
    Total Assets_________________________________________£255,000


    I hope this helps
  • UncleboobotUncleboobot Registered Posts: 14
    Hi Lucie,

    I stumbled across your post whilst looking for something else, but I also have this issue but can't seem to get a satisfactory answer either
    lucielowe said:

    Hi,

    ...... I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

    I have asked the question on this forum and asked my online tutor but as yet, other than learning by repetition, I too, fail to understand what goes in which column, and why.

    Did you ever get an answer?

    Regards


    Stuart
  • BertieBertie West Midlands Registered Posts: 224
    I don't understand the question
  • UncleboobotUncleboobot Registered Posts: 14
    Hi Bertie, I am not the original poster but I think I understand Lucie's question well enough to answer you. I'd really like to insert an image into this thread for you to see an example of what Lucie's talking about. Do you know how to insert images? I'm working from a Macbook (not sure if that is relevant)
  • UncleboobotUncleboobot Registered Posts: 14
    Bertie, I believe the OP was referring to the layout of the statement of Financial Position like in this example...
    lucielowe said:

    Hi,

    Can anyone help me with the statement of F/P. I understand what it is and how it achieves the answer however I dont understand what goes in which column? The template I have has 3 columns and I'm struggling to remember what goes where. Is there a proper explanation for this to help me remember?

    I think the OP is asking if you have to lay these statements out in the exact format as shown in the image. If, yes, (which I believe you do have to), then is there any rhyme or reason to it's layout - how can this layout be learned?
  • UncleboobotUncleboobot Registered Posts: 14
    Same question for the income statement....




    Is there a prescribed format here? What is the reason that certain figures/calculations are in column 1 yet others are in column 2 or 3? Why can't Sales be calculated in Column 1 and and the cost of sales calculated in column 2?

    Thanks

    UBB
  • UncleboobotUncleboobot Registered Posts: 14
    Just wanted to bump this question back into life.
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