statement of financial position

Definition

A formal reporting by independent auditors of a company's balance sheet summarizing the status of all accounts holding current assets (cash, cash equivalents, and assets to be sold or traded within 12 months) and current liabilities (all debts expected to be settled within 12 months). Long term assets and liabilities may also be reported separately.

Use this term in a sentence

Once the statement of financial position was completed by the auditors, they presented it to the board for review and discussion.

​ Was this Helpful? YES  NO 7 people found this helpful.

The statement of financial position was a useful document for the financial analyst to be able to share the financial health of the firm with others.

​ Was this Helpful? YES  NO 2 people found this helpful.

When the board of directors was handed the statement of financial position for the corporation in their care, they were stunned by the low level of assets and the high level of debt.

​ Was this Helpful? YES  NO 8 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Statement of Financial Accounting Standards statement of retain earnings