The Statement of Financial Position (also known as the Balance Sheet) presents the company’s financial position as of a specific date. It presents assets, liabilities, and equity, and provides users with insights into the business’s solvency, liquidity, and capital structure.
To view the report, Accounting > Statement of Financial Position (Balance sheet)
Assets = Liabilities + Equity
Assets are resources owned or controlled by the company that have value and will provide future economic benefits.
They include:
Non-Current Assets: Long-term items such as property, equipment, and intangible assets.
Current Assets: Short-term items such as inventories, receivables, and cash.
Liabilities are obligations of the company to pay money or deliver services to external parties.
They include:
Non-Current Liabilities: Long-term debts and obligations due after more than one year.
Current Liabilities: Short-term debts and payables due within one year.
Equity represents the shareholders’ interest in the company after deducting liabilities from assets.
It mainly consists of share capital, reserves, and retained earnings (profit or loss).
