Excel template statement of financial position
Excel template statement of financial position
This article provides details of Excel template statement of financial position that you can download now.
Microsoft Excel software under a Windows environment is required to use this template
These Excel template statement of financial position work on all versions of Excel since 2007.
Examples of a ready-to-use spreadsheet: Download this table in Excel (.xls) format, and complete it with your specific information.
To be able to use these models correctly, you must first activate the macros at startup.
The file to download presents four templates Excel template statement of financial position:
- Excel Financial Statements Template
This template enables users to compile comprehensive financial statements in accordance with International Financial Reporting Standards for Small & Medium Enterprises (IFRS for SME's) based on any trial balance regardless of the account structure. The financial statements are compiled by linking each account in the trial balance to a pre-defined financial statement reporting class and all the amounts that are included on the financial statements are automatically calculated based on the linked reporting classes. The template also facilitates including financial information which is not derived from a trial balance and can easily be rolled forward or back by simply changing the reporting year in a single input cell.
Financial statements template
The profit and loss statement is a summary of a business’s income and expenses over a specific period. It should be prepared at regular intervals (usually monthly and at financial year end) to show the results of operations for a given period.
Calculating the cost of goods sold varies depending on whether the business is retail, wholesale, manufacturing, or a service business. In retailing and wholesaling, computing the cost of goods sold during the reporting period involves beginning and ending inventories. This, of course, includes purchases made during the reporting period. In manufacturing, it involves finished-goods inventories, plus raw materials inventories, goods-in-process inventories, direct labour, and direct factory overhead costs.
In the case of a service business, the revenue is being derived from the activities of individuals rather than the sale of a product and hence the calculation of cost of goods sold is a smaller task due to the low-level use of materials required to earn the income."
- Tow Advanced Excel Financial Statements Template
It was previously referred to as Balance Sheet. What is the origin of the name Balance Sheet? The Balance is divided into two parts (figure 1). The assets are on one side and the claims are on the other side. Claims of creditors are called liabilities while claims of owners are referred to as equity. The total of the assets should equal the total of the claims. Hence, the statement was endearingly referred to as Balance Sheet because it is a statement where the two parts must balance.
Figure 1: The Accounting Equation
At the topmost part of the SFP is the title. The first line of the title shows the name of the company. It allows easy identification of the reporting entity. The second line identifies the FS which is the SFP. The third line is the date of the SFP. It share “as of the year ended”. This differentiates the SFP from the other financial statements with the third line of the title that reads “for the year ended.” How important is the third line?
It tells the reader that the balances reported on the SFP is the net effect of all transactions related to the specific account from the date of the establishment of the company up to the date of the SFT. As an example, look at the SFP in Figure 2. How is the balance of cash of P 120,000 computed? It is simply the sum of cash receipts less all the cash payment from the establishment date to the SFP cut-off date. What is the meaning of the P 120,ooo cash balance? This is the amount of cash available to be used for the company’s operations “as of” December 31, 20x1. In contrast, look again at Figure 2, but this time direct your attention to the Statement of Comprehensive Income which has for its thirds line “for the year ended” December 31, 20x1. Reported revenue (SoCE). SoCE is a report that presents the computation of the year end balance of equity accounts that are reported in the Equity section of the SFP. The last statement is the Statement of that are reported in the Equity section of the SFP. The last statement is the Statement of Cash Flows (SCF). This statement explains the cash balance that is reported on the SFP. The interconnected reports eventually end on the SFP.
Discussion Questions: Before moving on to the next part, answer the following review questions:
- What is the other name for SFP?
- Differentiate an “as-of” and “for the period” report.
- Discuss how the other financial statements are linked to the SFP.
Elements of the Statement of Financial Position
The SFP is a report based on the accounting equation: Assets = Liabilities + (Owners’) Equity (Figure 1). Most students endearingly refer to the accounting equation as ALOE. It was once called a Balance Sheet because the sum of the assets should be “balanced” as a consequence of double-entry accounting.
On one side of the SFP are assets. Assets are resources with future benefits that are within the control of the company. The asset should be useful to the company in the future. Control means that the company can prevent others from benefiting from the asset. To appreciate this, we will analyze how cash, a known asset, met this definition.
Out analysis of cash begins with the future benefits criterion. What are the uses of cash? It can be used to settle obligations, pay for purchases of assets or be distributed to owners. The second criterion is control? Can control be exerted over cash? Physical safeguards and processes are established in order to prevent others from using the company’s cash for themselves. Example of control is depositing cash in reputable banks. Moreover, there are legal actions that the company can use against someone who steal or misuse its cash. Given our analysis, cash is a resource that met the definition of an asset. Other examples of assets are receivables, inventory and equipment.
On the other side of the SFP are the claims. Liabilities and equity are sources of financing. Liabilities are claims of creditors while equity represents claims of owners. Creditors require payment of principal and interest. Owners, on the other hand, are not required to be repaid for their investment in the company. In the event of the company’s closure, the owners are entitled to the assets of the company only after all the creditors had been paid.