Meeting 3: Deriving revenue and expenses
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2 responses to “Meeting 3: Deriving revenue and expenses”
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The terminology can be very confusing!
Statement of Financial Position (SoFP) is the “correct” term under IFRS but most people will still call it a Balance Sheet. If you look at published accounts they usually call it a Balance Sheet. Even in a plc. (Greggs, I am looking at you here).
I think it is important that students recognise both. -
Terminology for exam purposes could be an issue.
BTEC L3 U3 updated the specification to examine Statement of comprehensive income (SoCI) previously know as profit and loss account and Statement of Financial Position (SoFP) previously known as balance sheet. I teach SoCI and SoFP but tell students that in industry they may still see the other terms used.
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