Is it necessary to show the reserve fund in a separate column on the statement of financial position (balance sheet)?
No it is not. The CICA handbook requires only the totals of items on the statement of financial position. In other words, a single column format is acceptable. However, showing the reserve fund and operating fund balances in separate columns may better demonstrate the concept that there are two funds, or two self-balancing sets of accounts for each of the reserve and operating funds. The requirements for the statement of operations encourage the separate presentation, two columns, for the reserve and operating fund revenue and expense results.
Related Questions
- Why does the Financial Independence report say my client is not in sound financial position, even though my balance sheet shows a positive net worth at the end of the planning horizon?
- Is it necessary to show the reserve fund in a separate column on the statement of financial position (balance sheet)?
- Is it necessary to disclose the reserve fund requirements in the notes to the financial statements?
