Statement of Financial Position

This chapter discusses the format and content of the statement of financial position by incorporating guidance from the conceptual framework, international accounting standards (IAS) 1 and other standards. The three elements that are always to be displayed in the heading of a statement of financial position are the entity whose financial position is being presented, the title of the statement and the date of the statement. Certain liabilities, such as trade payables and accruals for operating costs, which form part of the working capital used in the normal operating cycle of the business, are to be classified as current liabilities even if they are due to be settled more than 12 months from the date of the statement of financial position. Shareholders' equity represents the interests of the owners in the net assets of a corporation.