Statement of financial position

Statement of Financial Position

Another term for the balance sheet, showing a company’s assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

For example, a construction company’s statement of financial position might show $20 million in assets (including equipment and contracts in progress), $12 million in liabilities (including loans for equipment), and $8 million in equity, illustrating its financial structure.

The statement of financial position is a fundamental component of financial reporting under International Financial Reporting Standards (IFRS). It serves as a starting point for financial analysis and provides the foundation for assessing liquidity, solvency, and financial flexibility.