O'Reilly logo

Wiley IFRS 2014: Interpretation and Application of International Financial Reporting Standards by Brandon Hanekom, Blaise Colyvas, Raymond Chamboko, Edwin Selbst, Tapiwa Njikizana, Danie Coetsee, Bruce Mackenzie

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 4STATEMENT OF FINANCIAL POSITION

  1. INTRODUCTION
  2. SCOPE
  3. DEFINITIONS OF TERMS
  4. GENERAL CONCEPTS, STRUCTURE AND CONTENT
    1. General Concepts
    2. Structure and Content
  5. CLASSIFICATION OF ASSETS
    1. Current assets
    2. Noncurrent assets
    3. Other assets
  6. CLASSIFICATION OF LIABILITIES
    1. Current liabilities
    2. Noncurrent liabilities
    3. Offsetting assets and liabilities
  7. CLASSIFICATION OF SHAREHOLDERS' EQUITY
    1. Share capital
    2. Retained earnings
    3. Disclosure of share capital
  8. US GAAP COMPARISON

INTRODUCTION

The statement of financial position (sometimes called the balance sheet) is a statement that presents an entity's assets, liabilities, and equity (net assets) at a given point in time (i.e., as of a specific date). During the early era of financial reporting standard setting, throughout the nineteenth century and first half of the twentieth century, the emphasis of legislation was almost entirely on the statement of financial position but by the mid-twentieth century owners were asking for more and more information about operating performance, leading to presentations of an increasingly complete income statement (sometimes called the profit and loss account).

There is a continuing tension between the two financial statements, since—because of double entry bookkeeping conventions—they are linked together and cannot easily serve differing objectives. The stock markets look primarily at earnings expectations, which are largely based on historic performance, as measured by the income statement. If earnings measurement ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required