First lets agree that the “statement of financial position” you may have heard or read about is something we also like to call “balance sheet” from time to time. Regardless of how you name it though, it still includes your company’s assets, liabilities and equity balances. Name does not change the contents. 

Now, when it comes to contents, the financial reporting frameworks declare the items to be shown within these groups, i.e. receivables, inventories, payables, provisions etc., however they are more flexible when it comes to distinction of current and non-current presentation amongst assets and liabilities.

There could be two options for presenting your assets and liabilities:

1.       Classifying current and non-current assets and liabilities separately.

a.      Current asset is something you:

i.      hold primarily for trading purposes;

ii.      expect to realise during your company’s normal operating cycle;

iii.      expect to realise within the next 12 months after the reporting period.

b.      Current liability is something you:

i.      hold primarily for trading purposes;

ii.      expect to be settled during your company’s normal operating cycle;

iii.      expect to be due to be settled within the next 12 months after the reporting period.

c.       All other assets and liabilities are classified as non-current.

2.      Presenting assets and liabilities based on their liquidity and not just, but in order of their liquidity.

At the end of the day the rationale behind making the choice from the two options comes down to whichever method provider more reliable and relevant presentation of information.