What is a statement of financial position?

Definition of statement of financial position

A statement of financial position is another name for a balance sheet. It is used to provide an overview of a business’s financial position at a given point in time.

What does a statement of financial position include?

A statement of financial position is commonly used to assess the position of a business in terms of financial stability and potential risk. A typical statement is likely to include a snapshot of a business’s:

  • assets
  • liabilities (such as loans, VAT, and Corporation Tax)
  • equities

You can find an example of a statement of financial position on our balance sheet page.

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