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Accounting Equation

The document is a definition of a statement of financial position. It defines assets as economic resources controlled by the entity due to past events. Assets are classified as current if they are expected to be realized within 12 months, and noncurrent otherwise. Liabilities are present obligations to transfer economic resources due to past events, classified as current if due within 12 months. Shareholders' equity is the residual interest in the net assets of the entity.

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Hannie Carat
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59 views2 pages

Accounting Equation

The document is a definition of a statement of financial position. It defines assets as economic resources controlled by the entity due to past events. Assets are classified as current if they are expected to be realized within 12 months, and noncurrent otherwise. Liabilities are present obligations to transfer economic resources due to past events, classified as current if due within 12 months. Shareholders' equity is the residual interest in the net assets of the entity.

Uploaded by

Hannie Carat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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L I N E I T E M S

Biological Assets Provisions

Cash & Cash Property, Plant & Assets for Sale & Financial
Equivalent Equipment in Disposal Liabilites

Investment in Trade & Other Liabilities in


Financial Assets
Associates Payables Disposal for Sale

Trade & Other Current Tax Noncontrolling


Intangible Assets
Receivables Asset & Liability Interest

Investment Deferred Tax Asset Share Capital &


Inventories
Property & Tax Liabilty Reserves

C U R R E N T NONCURRENT A S S E T

Cash & Cash


Equivalent Long- term
Inventories Intangible Assets
Investments
Financial Asset-
FVPL Prepaid Expenses Property, Plant & Other Noncurrent
Trade & Other Equipment Assets
Receivables

STATEMENT OF FINANCIAL POSITION

C U R R E N T LIABILITIES NONCURRENT

Trade & Other Current Portion of


Payables Long term Debt Noncurrent Portion
of Long term Debt Long term obligations
Current Current Tax to officers
Provisions Liability
Lease Liability
Long-Term
Short-term
deferrred revenue
Borrowing Deferred Tax
Liability

SHAREHOLDERS' EQUITY

Capital Stock Share Capital

Subscribed Subscribed Share


Retained Earnings Accumulated
Capital Stock Capital
(Deficit) Profits (Losses)

Retained Earnings Appropriation Ordinary Share


Common Stock
Appropriated Reserves Capital

Revaluation Revaluation Preference


Preferred Stock
Surplus Reserve Share Capital

Additional Paid
Treasury Stock Treasury Shares Share Premium
Capital
STATEMENT OF FINANCIAL POSITION

Is a formal statement showing the three elements comprising


Definition
financial position, namely ASSETS, LIABILITIES and EQUITY

Are present economic resource CONTROLLED by the entity as a


ASSETS
result of PAST EVENT

CURRENT NONCURRENT

presented in order of

LIQUIDITY
Residual definition
asset is an UNRESTRICTED
All other assets NOT
cash or cash equivalent
CLASSIFIED AS CURRENT
entity hold asset for the purpose

of TRADING

REALIZABLE, SALABLE,

CONSUMABLE in 12 months

A present obligation to TRANSFER an economic resource as a


LIABILITIES
result of PAST EVENT

CURRENT NONCURRENT

Settled in normal operating cycle

Entity holds liability for the purpose


RESIDUAL definition
of TRADING
All other liabilities NOT
Settled in 12 months after reporting
CLASSIFIED AS CURRENT
period

DOES NOT have unconditional

right to defer settlement

RESIDUAL INTEREST in the assets of the SHAREHOLDERS'

entity after deducting all of the liabilities EQUITY

Mean "NET ASSETS" or total assets less

liabilities.

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