Statement of Financial Position (Cambridge (CIE) IGCSE Accounting)

Statement of Financial Position for Limited Companies

What is the layout of the statement of financial position of a limited company?

• The statement of financial position for limited companies is mostly the same as that of a sole trader and a partnership

  • There is no change to the non-current assets, current assets  and current liabilities sections

• Any debentures and redeemable preference shares are included in the non-current liabilities

• The capital section of the statement of financial position is called the equity section

• The equity section includes

  • The share capital

    • Ordinary and non-redeemable preference shares

  • The general reserve

  • The retained earnings

• The information for the equity section is obtained from the statement of changes in equity