Statement of financial position sub-headings: current assets, non-current assets, equity, current liabilities, non-current liabilities
A statement of financial position groups everything a company owns and owes into five labelled sections. Each section tells readers whether an item is short-term, long-term, or belongs to the owners.
Formula
Assets = Equity + Liabilities (i.e. Non-current assets + Current assets = Equity + Non-current liabilities + Current liabilities)
Real World
Amazon's SoFP lists warehouses and servers as non-current assets, customer prepayments as current liabilities, and long-term bonds as non-current liabilities — each sub-heading reveals a different layer of the business's financial structure.
Exam Focus
Classify items by time horizon first: anything settling within 12 months is current; beyond 12 months is non-current — never guess from the name alone.
Essay Framework
Use PEEL to structure every paragraph. Tap each step for guidance and an example.
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