The minimum line items of the statement of financial position

Learning objectives

• Identify the minimum line items of the statement of financial position.L1
• Explain when to add line items, headings or subtotals.L1

Normative references

• IAS 1 §54The statement of financial position includes, as a minimum, the line items listed in para. 54 (in particular property, plant and equipment, investment property, intangible assets, financial assets, investments accounted for using the equity method, biological assets, inventories, trade and other receivables, cash and cash equivalents, assets and liabilities held for sale, trade and other payables, provisions, financial liabilities, current and deferred tax assets and liabilities, non-controlling interests, and issued capital and reserves); additional line items, headings and subtotals are dealt with in para. 55, and the absence of a prescribed order or format in para. 57.
• IAS 1 §55An entity presents additional line items (including by disaggregating the line items listed in para. 54), headings and subtotals in the statement of financial position when such presentation is relevant to an understanding of its financial position; such subtotals meet the conditions of para. 55A (amounts recognised and measured under IFRS, clear labels, consistency from period to period, no more prominence than the required totals).
• IAS 1 §57The Standard does not prescribe the order or format of presentation; para. 54 lists items that are sufficiently different in nature or function to warrant separate presentation; line items are added depending on the size, nature or function of items, and descriptions and ordering may be amended according to the nature of the entity and its transactions.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

4 questions

• The statement of financial position presents line items separately when the items concerned are sufficiently different in nature or function.L1
• Which statements about the structure of the statement of financial position are correct? More than one answer is possible.L1
• A trainee summarises the requirements of IAS 1 on the statement of financial position of Argan SA. Which of the trainee's sentences is wrong?L1
• Kappa SA is preparing its statement of financial position. Which statements are consistent with IAS 1? (Several answers.)L1