CAT / FIA FFA Syllabus A. The Context And Purpose Of Financial Reporting - The main financial statements - Notes ^{1 / 2}

The statement of financial position is a list of all the assets owned and the liabilities owed by a business as at a particular date.

It is a snapshot of the financial position of the business at a particular moment.

A statement of profit or loss is a record of revenue generated and expenditure incurred over a given period.

The statement shows whether the business has had more revenue than expenditure (a profit) or vice-versa (a loss)

The board of directors is responsible for the preparation of company annual financial statements.