Statement of Financial Position

hi guys today's video is on the statement of financial position which is the third statement that you need to know for ACC first of all the heating is very important statement of financial position of the name of the business as act and detect so three important things name of segment name of business and the debt what goes into this statement assets liabilities and equity so we're gonna start with assets we need to make an alien cool essence then the assets are split into three categories you have non current assets then you have kind of assets and then you have financial assets so there are three staff meetings under the exits reading non current current and financial okay so what type of accounts go under non current it's all the assets which are the newest long-term as an example you'll have equipment another example will be vehicles so those are two one kind of assets which are listed over they the Niaga current assets are give you two examples the most common one is bank and then accounts receivable which is your theatres it's a realistic to non-college we listen to current financial assets are like new investments or fixed deposits and sound like one account over their investment if you had a short-term investment which means it's going to mature within 12 months it would be a current asset and not a financial asset so financial assets are long-term investments when you're done writing that on your cards you have to have the amounts next to it some dimecaco bonds to each account let's make it quick 19,000 and vehicles 10,000 you put a block around all you non current assets you add it up and you put the total mix to the words not a pattern then you'll do the same thing for bank accounts receivable you will add it up and you put the total next to the word cut it and then you'll do the same thing for financial assets but put in your total for investment you put a block around it will total it up when you are done listing all of your assets and if putting you three categories you can then add up all your assets and then we have the words total assets what is your total assets it's your non-current plus your current plus your financial so those three amounts together will go into total assets this is the top part of your second a financial position which is the asset section we then move on to the equity liability section so again you don't have a heating it would be and liabilities the first subheading under this will be equity then you have a subheading who non-current my abilities and the new search I'm using is headed by abilities okay so there's three sub meetings under the equity liability section with equity non current liabilities and current liabilities so what is equity equity is the closing balance in the statement of changes in equity see in the previous video that I've done we've done the statement of changes in equity the total D is what would go here okay so whenever that total was in the segment of changes in equity you will put here it is just a transfer from the second of changes in equity but non current liabilities an example they would be a loan a long-term loan whatever the total is there you put next to the word now and then an example of current liabilities accounts payable and is your clear it is the total for the accounts payable you put over me so three categories equity non current and current liabilities when you are done we'll follow the same format as your assets so you're gonna block all of the non current liabilities added up put it at the top you're gonna block all the common abilities and up and put it at the top when you are done right at the bottom your hair chopped oh it would be my abilities it's in order to calculate that you're gonna send my equity plus my non current liabilities plus my current liabilities those three together will give you your total equity and liabilities once you are done with the whole statement you must make sure that you total assets and your total equity and liabilities are equal so now amount that you have battle assets it should be the same amount for total equity and liabilities and that would make you statement of financial position paddles

Channel: Asgari Khan

Views: 112,585

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Id: GC8roRCwNjQ

Length: 5min 57sec (357 seconds)

Published: Fri Apr 01 2016