The statement of financial position (sometimes called the balance sheet) is a statement that presents an entity's assets, liabilities, and equity (net assets) at a given point in time. This chapter discusses the format and content of the statement of financial position by incorporating guidance from the conceptual framework, IAS 1 and other standards. The IASB conceptual framework describes the basic concepts by which financial statements are prepared. Under IFRS, assets and liabilities are recorded at cost or fair value at inception in the financial statements, which for assets and liabilities arising from arm's-length transactions will generally be equal to negotiated prices. Assets, liabilities, and shareholders' equity are presented separately in the statement of financial position. The liabilities are normally displayed in the statement of financial position in the order of payment due dates. IAS 1 does not prescribe the sequence or format for the items presented in the statement.