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Statement of Financial Position - Coggle Diagram
Statement of Financial Position
Non-currents assests
Items owned for a period of more than one year
Definition of Statement of Financial Position
Shows the assets of the organisation and its liabilities(what it owes to others) at a particular point in time. Also what is the overall value of the business
Net assets employed
This is the value of non-current assets added to the working equity figure(if positive- if working equity is negative it will be subtracted from non-current assets)
calculation: non-current assets +/- working equity
Current assets
Items owned for a period of less than one year
Current liabilites
Items owed for a period of less than one year
Working equity
The ability to pay short-term debts
Calculation: current assets - current liabilities
Non-current liabilities
Long-term debts of the business, e.g bank loan, debentures etc
Net assets
The overall value or worth of the business
calculation: net assets employed - non current liabilities
Equity & Reserves
This shows how the business has been financed e.g the initial investments in the business( equity, shares, etc), retained profits, etc. It should add up to the exact value of the total net assets