What is the Statement of Financial Position - Definition - Meaning - Explanation
It is a Statement of Assets , Liabilities and Equity to show the positions of balances these three Types of Accounts (Permanent Accounts) on a particular time of a specified date. It is also known as Balance Sheet which is renamed to Statement of Financial Position according to new International Financial Reporting Standards . This statement has two sides. One side is named as Assets Side and other side is known as Liabilities & Equity Side. Both of these sides must be equal in monetary value, otherwise this statement is not correct and accurate and does not provide true & fair view of financial information about Assets, Liabilities and Equity to the Users of Financial Statements . This statement actually shows the verification of Accounting Equation that is Assets = Liabilities + Equity. At the end of each accounting period, this statement is the part of Financial Reports and distributed to shareholders or owners of the business annuall...