Statement of Financial Position

The statement of financial position is one of the basic financial statements of a not-for-profit organization. It’s the organization’s balance sheet. The statement must be presented in order to present an organization’s financial position and changes in net assets as part of a complete set of financial statements prepared in accordance with generally accepted accounting principles.

The statement of financial position should present information about an organization’s liquidity by either sequencing assets and liabilities or classifying assets and liabilities as current and noncurrent. The statement should view the organization as a whole and report total assets, total liabilities and total net assets. It should also report totals for unrestricted net assets, as well as information about the nature and amounts of temporarily restricted and permanently restricted net assets (unless disclosed in the notes to the financial statements).

According to SFAS 117, the statement of financial position provides information about an organization’s assets, liabilities, and net assets at a specific moment in time. The focus of this statement is on the organization as a whole. The statement reports assets, liabilities, net assets, and separate totals for the three classifications of net assets—that is, totals for unrestricted, temporarily restricted, and permanently restricted net assets. The statement should also present information about the nature and amounts of temporarily restricted and permanently restricted net assets unless that information is fully disclosed in the notes to financial statements.

Taken From : Wiley Not-for-Profit Accounting Field Guide 2003

Related posts:

1. Statement of Financial Position (5) In reviewing this statement of financial position, there are several...
2. Statement of Financial Position (2) The statement of financial position should reflect assets and liabilities...
3. Statement of Financial Position (3) One caution in classifying current assets is a specific statement...
4. Statement of Financial Position (4)a The Museum of Accounting Statements of Financial Position September...
5. Statement of Activities (3) According to SFAS 116, Accounting for Contributions Received and Contributions...

Related posts brought to you by Yet Another Related Posts Plugin.