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June 15, 2026

Teaching the Statement of Changes in Financial Position Without Worksheets or T-Accounts.

Key Points

The aim is to improve student understanding of the Statement of Changes in Financial Position (SCFP) and its relationship with other financial statements.
Introduced an approach to constructing the SCFP without worksheets or T-accounts.
Used a balance sheet, income statement, and statement of retained earnings to prepare the SCFP.
Focused on analyzing a company's financing activities and goals while teaching.
Developed a clearer understanding of SCFP's analytical strengths.
Enhanced student interest in financial statement analysis through relevant questions.

Abstract

Abstract The relationship between the Statement of Changes in Financial Position (SCFP) and other financial statements is not fully developed in most financial accounting texts. In addition, the analytical strengths of the SCFP are not explored in these texts adequately to sustain a continuing interest in the statement by students. This article presents an approach to overcome this problem by teaching the statement's construction while answering relevant analytical questions about a company's financing activities and goals. The method uses a balance sheet, an income statement, and a statement of retained earnings to prepare an SCFP instead of using traditional worksheet and/or T-accounts.

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