Statement of Financial Position

An entity must normally present a classified statement of financial position, separating current and non-current assets and liabilities. Only if a presentation based on liquidity provides information that is reliable and more relevant may the current / non-current split be omitted. In either case, if an assets (liability) category combines amounts that will be received (settled) after 12 months with assets (liabilities) that will be received (settled) within 12 months, note disclosure is required that separates the longer-term amounts from the 12-month amounts.

Current assets are cash; cash equivalents; assets held for collection, sale or consumption within the entity's normal operating cycle; or assets held for trading within the next 12 months. All other assets are non-current.

Current liabilities are those to be settled within the entity's normal operating cycle or due within 12 months, or those held for trading, or those for which the entity does not have an unconditional right to defer payment beyond 12 months. Other liabilities are non-current.

When a long-term debts is expected to be refinanced under an existing long facility and the entity has the discretion the debt is classified as non-current, even if due within 12 months.

If a liability has become payable on demand because an entity has breached an undertaking under a long-term loan agreement on or before the reporting date, the liability is current, even if the lender has agreed, after the reporting date and before the authorization of the financial statements for issue, not to demand payment as a consequence of the breach. However, the liability is classified as non-current if the lender agreed by the reporting date to provide a period of grace ending at least 12 months after the end of the reporting period, within the entity can rectify the breach and during which the lender cannot demand immediate repayment.

Minimum items on the face of the statement of financial position

• Property, plant and equipment
• Investment property
• IntangIble assets
• Financial assets
• Investments accounted for using the equity method
• Biological assets
• Assets held for sale
• Inventories
• Trade and other receivables
• Cash and cash equivalents
• Trade and other payables
• Provisions
• Financial liabilities
• Liabilities and assets for current tax, as defined in IAS 12
• Deferred tax liabilities and deferred tax assets, as defined in IAS 12
• Liabilities included in disposal groups
• Minority interest, presented within equity
• Issued capital and reserves attributable to equity holders of the parent

Additional line items may be needed to fairly present the entity's financial position.

IAS 1 does not prescribe the format of the balance sheet. Assets can be presented current the non-current, or vice versa and liabilities and equity can be presented current then non-current then equity, or vice versa. A net asset presentation (assets minus liabilities) is allowed.

Regarding issued share capital and reserves, the following disclosures are required:

• Numbers of shares authorized, issued and fully paid, and issued but not fully paid
• Par value
• Reconciliation of shares outstanding at the beginning and the end of the period
• Description of rights, preferences, and restrictions
• Treasury shares, including shares held by subsidiaries and associates
• Shares reserved for issuance under options and contracts
• A description of the nature and purpose of each reserve within owners' equity