2. The Statement of Financial Position (IAS 1) Flashcards
List out the components of the Statement of Financial Position according to IAS 1.
ASSETS
Non-current Assets
Property, Plant and Equipment
Right-of-use Asset
Goodwill
Other intangible assets
Current Assets
Inventories
Trade and other receivables
Other current assets (e.g. prepayments)
Cash and cash equivalents
Total Assets
Equity and Liabilities
Equity
Share Capital: ‘£1 equity shares’
Share Capital: ‘10% £1 irredeemable preference shares’
Share Premium
Retained Earnings
Other Reserves
Total Equity
Non-Current Liabilities
Long-term Borrowings
Lease Liability
Current Liabilities
Trade and Other Payables (including accruals)
Deferred Income
Short-term Borrowings
Lease Liability
Provisions
Income Tax Payable
Total Equity and Liabilities
What is included in PP&E?
All tangible assets (including land and buildings) are combined under the heading Property, Plant and Equipment. The user would refer to the non-current assets note for detail.
What is included in other intangible assets?
Other intangible assets will include the carrying amount of purchased intangible assets and the capitalised costs of internally developed intangible assets.
What is included in trade and other receivables?
Where are prepayments and the allowance for receivables include?
Trade receivables and any other receivables (including VAT due) are combined as trade and other receivables; prepayments are included in the heading other current assets. The allowance for receivables is offset against ‘trade and other receivables’.
What is Cash and Cash Equivalents comprised of?
Cash in hand and Cash at bank are combined as ‘Cash and Cash Equivalents’.
What is long-term borrowings comprised of?
Any long term liabilities such as bank loans or debt securities that are not repayable within 12 months are combined as long-term borrowings under non current liabilities. Redeemable preference shares would also be include here.
What figure for share capital is included in the statement of financial position?
There are detailed disclosure requirements for share capital in IAS 1, in particular of the issued, fully paid and partly paid share capital, and of the par value.
The figure included in the statement of financial position is the called up share capital, both paid and unpaid.
What is included in short term borrowings?
Bank overdrafts, which are technically repayable on demand, are called ‘short-term borrowings’.
They are not offset against any cash and cash equivalent asset balances, unless a right of set-off exists.
What is trade and other payables comprised of?
Trade payables and other payables (including VAT, PAYE/NIC and sales commission owed, interest payable and accruals) are combined as ‘trade and other payables’.
What is deferred income?
Deferred income is income that has been received before it has been earned. It is presented as a current liability as it represents the goods or services that the entity must transfer to its customer in respect of the income received.
