The Statement of
financial position and Statement of Performance are very
interrelated. Some points of connections between the two statements
are below:
- The bottom line of the Statement of Financial Performance is
Net Income which links it to Statement of Financial Position as Net
Income flows into Stock Holders Equity as Retained Earnings.
- The Purchase, Sales or Other Disposition of Assets appears both
in Statement of Performance and Statement of Financial
Position
- Statement of Financial Performance demonstrates how well the
Company/Entity has been able to utilize the Assets and Liabilities
in the Statement of Financial Postion during the year