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.

Got questions? Ask Emily!

FreeAgent's Chief Accountant Emily Coltman is available to answer your questions in the comments.