SM Prime Holdings, Inc. 2019- Annual ReportStatement of Financial PositionBased on our observation, the SM prime used the old name ofFinancial Position the "Balance Sheet" nonetheless it follows thestandard format for financial position which starts with assets,followed by liabilities and shareholders’ equity. The entity shows twosucceeding periods- 2019 and 2018,that allows primary users toidentify similarities and differences among items, thus ensurescomparability. As presented, assets were broken down into two partsthe current and noncurrent as well as its liabilities. SM Prime alsofollows the standard formula that assets are equal to its totalliabilities and shareholders’ equity and it creates balance amountingto P667,279,674. The presentation and classification of items in thefinancial position is the same for both periods which showsconsistency. The financial position of SM Prime used consolidatedfinancial position to create one financial position for both the parentand its subsidiaries. The entity aggregates the financial informationby putting notes to financial statement to summarize details that isnot obscured. And asbfor the notes, it classify information in amanner that group similar and separate dissimilar items, and putfurther details for unrecognized assets and liabilities. The entity’sfinancial position is presented annually although it does not indicate“As of” but only Dec. 31, it also did not put “year ended” just like theincome statement, changes in equity and cash flows. All in all theSM Prime financial position support transparency and is relevant inhelping primary users to create economic decisions.
