Statements of financial position 3 / 13

Statement of financial position (Example)

CIMA F1 Statement of financial position

Remember

  • Total Assets = Total Liabilities

Reserves

Reserves are charges against profit.

  • Revenue reserves are accumulated and undistributed profits of a company. They include retained earnings, general reserves and a reserve to replace non current assets. They will increase if there is an increase in retained earnings and decrease if dividends are paid out of retained earnings.

  • Capital reserves include the share premium account and revaluation reserve.

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