2.2 Format of the Statement of Financial Position

The format of the statement of financial position follows the basic accounting equation．Both a net asset and a total asset presentation are allowed．

Net asset presentation states that ‘Assets － Liabilities ＝ Capital’， where net assets equal total capital． This format is shown in Exhibit 2.2.

Total asset presentation states that ‘Assets ＝ Capital ＋ Liabilities’， where total assets equal capital plus total liabilities． This format is shown in Exhibit 2.3.Note that the items shown in bold are subtotals or totals that should be shown on the statement of financial position．