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Fundamentals of Accountancy, Business and Management 2 2: Statement of Financial Position - Report Form
Fundamentals of Accountancy, Business and Management 2 2: Statement of Financial Position - Report Form
SENIOR
ACCOUNTANCY, BUSINESS HIGH
AND MANAGEMENT 2 (FABM 2) SCHOOL
2
Self-
Statement of Financial Position – Learning
Module
Report Form 2
Quarter 1
Fundamentals of Accountancy, Business and Management 2 (FABM2) – Grade 12
Quarter 1 – Self-Learning Module 2: Statement of Financial Position – Report Form
First Edition, 2020
Republic Act 8293, section 176 states that: No copyright shall subsist in
any work of the Government of the Philippines. However, prior approval of the
government agency or office wherein the work is created shall be necessary for
exploitation of such work for profit. Such agency or office may, among other things,
impose as a condition the payment of royalties.
Self-
Learning
Module 2
Quarter 1
This learning material hopes to engage the learners in guided and independent
learning activities at their own pace and time. Further, this also aims to help learners
acquire the needed 21st century skills especially the 5 Cs, namely: Communication,
Collaboration, Creativity, Critical Thinking, and Character while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning material while being an active
learner.
Posttest - This measures how much you have learned from the
entire module.
EXPECTATIONS
After going through this self-learning module, you are expected to:
1. identify the key parts of Statement of Financial Position;
2. prepare an SFP using the report form with proper classification of items
as current and non-current; and
3. reflect on the importance of preparing SFP.
PRETEST
True or False: Directions: Write “/” if the statement is true and “X” if the
statement is false.
1. In a Statement of Financial Position written in report form, assets are
written on the left side while the liabilities and owner’s equity are
written on the right side.
2. The Statement of Financial Position and the Balance Sheet are different
financial statements.
LESSON
ABC Company
Statement of Financial Position
As of December 31, 2019
Figure 2.2 Heading
The statement heading includes the name of the company, the name of
the statement, and the date covered. The date of the Statement of Financial
Position use of “as of” because the amounts in the SFP are permanent,
meaning that the amounts are cumulative from the beginning of the life of the
company.
When the company has a lot of assets (for example: cash, accounts
receivable, prepaid expenses), owners may sometimes think that the company
is doing well. There are instances that owners forget that they might also have
a lot of liabilities it may result in their equities having a very small balance.
With the preparation of the SFP, the owner can easily see the assets,
liabilities, and equity balances of his/her company which will show exactly
the financial position of the company as of a given point in time. Without the
SFP, the company cannot know if it truly owns anything because in the case
of bankruptcy, liabilities are paid first.
ACTIVITIES
I. Practice
1. ABC Retail Store had current assets amounting to Php 10,000. Non-
current assets for the year totaled Php 7,600. How much are the
company’s total assets?
2. ABC Retail Store’s total liabilities amounted to Php 1,000. Total equity
had an ending balance of Php 20,000. How much are total assets?
Use any business name and the end of the previous year for the
heading.
III. Directions: Below is the Post-Closing Trial Balance of EC Company
for the year ended December 31, 2019. Prepare a Statement of
Financial Position in Report Form. Answer the following questions:
1. How much are the total current assets of EC Company? Total
non-current assets? Total assets?
2. How much are the total current liabilities of EC Company? Total
non-current liabilities? Total liabilities?
3. How much are the total liabilities and owner equity of EC?
EC COMPANY
Post Closing Trial Balance
December 31, 2019
WRAP-UP
Let’s wrap-up!
1. What are needed to keep in mind in preparing the report form of the
statement of financial position? Give at least three key points.
POSTTEST
Directions: Use the accounts in the given table to prepare a pro forma
SFP using the report form.
Online References
https://www.bookwidgets.com/a/widgets/6308816135127040
https://smallbusiness.chron.com/difference-between-report-form-account-form-balance-sheets-
54993.html#:~:text=Statements%20of%20financial%20position%20forms%20provide%20a%
20snapshot%20of%20the,cash%20flows%20of%20a%20business.&text=Each%20of%20the%
20documents%20relies,Income%20statement.