5.4 Statement of Financial Position

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5.4 Statement of Financial Position: Cambridge IGCSE Business 0264 lesson

5.4 Statement of Financial Position is one of the 5 lessons in Unit 5 Financial Information and Decisions of Cambridge IGCSE Business 0264, for first examination in 2027. It is an editable PowerPoint of 28 slides written against syllabus section 5.4.1, with 1 learning check and an exit ticket. Also suitable for Cambridge IGCSE (9-1) Business 0774 and Cambridge O Level Business 7081, which share the same content.

Non-current and current assets, current and non-current liabilities, equity and capital employed, with calculations of total assets, total liabilities and working capital. The case study is Red Dragon Restaurant, a Mexico City Chinese restaurant with two years of figures: students read the changes in assets, liabilities and equity, then consider using inventory to raise finance and what a rise in current liabilities means. No constructing statements, in line with the syllabus note, and no embedded video.

Slide from lesson 5.4 of Cambridge IGCSE Business 0264: Statement of Financial Position

Learning objectives

Taken from the objectives slide of the lesson, which follows the syllabus wording.

5.4.1 The main elements of a statement of financial position

  • non-current assets, e.g. property (land and buildings), machinery
  • current assets, e.g. inventory, trade receivables, cash
  • non-current liabilities, e.g. bank loans
  • current liabilities, e.g. trade payables, overdraft
  • concept of capital employed
  • make simple calculations based on statements of financial position: total assets, total liabilities, working capital
  • make decisions based on simple statements of financial position

Note: candidates will not be assessed on constructing statements of financial position.

What is in the lesson

The running order below is the deck as sold. Every lesson in the course follows the same shape: learning objectives, content slides with the real business examples, a learning check after each section, a case study with questions, key takeaways and an exit ticket. A teacher answer key (PDF), with model answers to every learning check, case question and exit ticket, is included when you buy the unit or the complete course.

Slide by slide (28 slides)
  1. Title slide
  2. Learning Objectives
  3. The Big Picture
  4. Elements of the Statement of Financial Position
  5. Non-Current Assets
  6. Current Assets
  7. Calculating Total Assets
  8. Current Liabilities
  9. The Four Main Categories
  10. Non-Current Liabilities
  11. Calculating Total Liabilities
  12. Learning Check – Assets, Liabilities and Working Capital
  13. Understanding Equity
  14. Example Layout: Statement of Financial Position
  15. Capital Employed
  16. Interpreting the Statement of Financial Position
  17. Key Points in Interpretation
  18. Working Capital
  19. Importance of Working Capital
  20. Case Study: Red Dragon Restaurant
  21. Extract from the statement of financial position of Red Dragon.
  22. Red Dragon Restaurant: Check Your Understanding
  23. Red Dragon – Using Inventories To Raise Finance
  24. Red Dragon's Current Assets
  25. Increase in Current Liabilities
  26. Additional Information for Investors
  27. Conclusion
  28. Exit Ticket

Where it fits

Week 32 of the 0264 scheme of work and pacing guide, which gives the course 46 weeks with a mock in week 41. Previous lesson: 5.3 Profit and Loss. Next lesson: 5.5 Analysis of Accounts. All 28 lessons: Cambridge IGCSE Business 0264.

How to buy

The lesson on its own: 5.4 Statement of Financial Position on TES. The unit: Unit 5 Financial Information and Decisions. The whole course in one download: 0264 Complete Bundle. Lesson 1.1 is free with its answer key if you want to see the format first.