Section 4 – Statement of Financial Position

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Section 4 – Introduction

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Section 4 – Analysis

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Section Downloads

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Contents

4.1 Scope of this section.

4.2 Small Companies-Exemptions.

4.2.1Extract from FRS102: Section 4.1A.

4.3 Information to be presented in the statement of financial position.

4.3.1 Extract from FRS102: Section 4.2-4.4A and Section 4.7.

4.3.2 OmniPro comment.

4.3.2.1 The Formats.

4.3.2.1.1 Debtors.

4.3.2.1.2 Creditors.

4.3.2.2 Practical application of Format 1.

4.3.2.3   Schedule 3 Format 1 -Balance Sheet.

4.3.2.4 Schedule 3 Format 2- Balance Sheet.

4.4 Information to be presented either in the statement of financial position or in the notes- Share Capital and Equity Disclosures.

4.4.1 Extract from FRS102: Section 4.12-4.13.

4.4.2 OmniPro comment.

4.4.2.1 Overview.

4.4.2.2 Share Capital Disclosures.

4.4.2.3 Notes required on any reserves included in equity.

4.5 Information to be presented in the notes-binding agreement to sell (a) major assets/asset groups.

4.5.1 Extract from FRS102: Section 4.14.

4.5.2 OmniPro comment.

4.6 Alternative statement of financial position format.

4.6.1 Extract from FRS102: Section 4.2-4.2D.

4.6.2 OmniPro comment.

4.6.2.1. Overview.

4.6.2.2 Example of Alternative statement of Financial Position.

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Downloads


Section 4 Statement of Financial Position Quick Guide (PDF) (69 downloads )

Summary

Section 4 deals with the presentation of the statement of financial position. The statement of financial position (also known as the balance sheet) presents an entity’s assets, liabilities and equity at the end of the reporting period.

What is new?

The appearance of the statement of financial position has not changed from the appearance of a balance as prepared in accordance with the Companies Act.

What are the key points?

The statement of financial position which can also be called a balance sheet should be laid out in accordance with the formats as specified under the Companies Act. When the Companies (Accounting) Bill 2016 is enacted it will be possible to use the IFRS formats as long as it provides the substance of the information required by Companies Act (UK companies can currently use IFRS formats).

An entity is required to distinguish those items that are current and non-current. To comply an entity shall present current and non-current assets and current and non-current liabilities as separate classifications in its balance sheet.

An entity shall present additional line items, headings, and sub-totals in the balance sheet when such presentation is relevant to an understanding of the entity’s financial position.

Disclosure is required in either the notes to the financial statements or on the face of the statement of financial position in relation to the following, a description for each reserve within equity and for each class of shares; the number and par value of shares issued, the rights, preferences and restrictions attached to those shares including restrictions on distribution of dividend, shares in the entity held by subsidiaries, joint ventures or associates and a reconciliation of the number of shares at the start and end of the year.

What do accountants need to do?

Be aware of the layout required for the statement of financial position so that financial statements prepared under FRS 102 are compliant.

Advise the client of any changes.

What do companies need to do?

Be aware of the layout required for the statement of financial position so that financial

statements prepared under FRS 102 are compliant.

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Examples

Example 1:  Extract from the Consolidated Balance Sheet – S.4 FRS 102.

Example 2: Extract from the notes to the financial statements – Ordinary share capital

Example 3: Extract from the notes to the financial statements – Reserves note.

Example 4: Alternative Statement of Financial Position S4.2.A – S4.2D Alternative IFRS Version.

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Section 4 Statement of Financial Position Detailed Guide (PDF) (82 downloads )

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Downloads 


FRS 102 35 Part Differences Quick Guide (859 downloads )


FRS 102 35 Part Differences Guide (581 downloads )


FRS 102 Differences on Transition Checklist (1119 downloads )


FRS 102 Differences on Transition Examples Appendix (1092 downloads )


Fillable Differences on Transition Checklist (866 downloads )

Website Links

Difference Guide – Statement of Financial Position

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Downloads 


Section 4 Disclosure Examples (81 downloads )


FRS 102 Disclosure Checklist (PDF) (745 downloads )

Website Links

Disclosure Checklist

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