Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Accountancy,
Business &
Management 2
The learners shall be able to
1. identify the elements of the SFP and describe each of them.
4. prepare an SFP using the report form and the account form
with proper classification of items as current and noncurrent.
FINANCIAL STATEMENTS
1. Statement of Financial Position
2. Income Statement/Statement of Comprehensive
Income
3. Statement of Changes in Equity
4. Statement of Cash Flows
5. Notes, comprising a significant accounting policies
and other explanatory information
Responsibility for
financial statement
The management of
an entity has the
primary responsibility
for the preparation
and presentation of
financial statements.
1.
Statement of
Financial
Position
Assets, Liabilities and Equity
1. What is Statement of Financial
Position?
2. How the other financial statements
are linked to the SFP?
STATEMENT OF
FINANCIAL
POSITION
Is a formal statement showing the three
elements comprising the financial
position.
Interrelationships among the
Financial Statements
The income statement and the statement of owners equity are interrelated.
The balance sheet and the cash flow statement are interrelated.
ASSETS
Unearned
Accrued
PayablesExpense
Long-term Income
Liability
LIABILITY
Expense
Revenue
Withdrawal
Capital
EQUITY
1. When is the presentation of assets,
liabilities with separate current & non-
current classification useful?
2. Why is it important to know the normal
balance of each account?
3. What are the two common formats of SFP?
Accounting Equation: ???
ASSET
__________ LIABILITY
= _____________ EQUITY
+ __________
BASIC
BASIC FORM OF ACCOUNT
In its simplest form, an account consists of
1. the title of the account,
2. a left or debit side, and
3. a right or credit side.
The alignment of these parts resembles the letter T,
and therefore the account form is called a T account.
Title of Account
Normal
Balance
Liabilities
Decrease Increase
Debit
Normal
Credit
NORMAL
NORMAL BALANCE
BALANCE
OWNERS
OWNERS DRAWINGS
DRAWINGS
Owners Drawings
Increase Decrease
Normal
Balance
Debit
Credit
NORMAL BALANCES REVENUES AND EXPENSES
Revenues
Decrease Increase
Normal
Expenses
Increase
Debit Decrease
Credit Balance
Normal
PRES
ENTA
TION
OF
STA
TEM
O EN
FIN F T
A
PO NCIA
SIT L
ION
TWO
ACCEPTABLE
FORMATS
ACCOUNT FORM
REPORT FORM
Thanks!
Any questions?
You can find me at facebook RUBEN SOSING LEYBA
CONTACT NO. 09163131801
1. The SFP provides readers with the
information as to the companys
financial position as of a specified
TRUE date.
OR 2. Assets=Liabilities + Owners Equity is
FALSE the governing equation of the SFP.