Conceptual Framework for Financial Reporting

Capital maintenance adjustments
The revaluation or restatement of assets and liabilities gives rise to increases
or decreases in equity. While these increases or decreases meet the definition
of income and expenses, they are not included in the income statement under
certain concepts of capital maintenance. Instead these items are included in
equity as capital maintenance adjustments or revaluation reserves.
8.10
Conceptual Framework
A92
© IFRS Foundation

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Appendix
Defined terms
The following defined terms are extracted or derived from the relevant paragraphs of the Conceptual
Framework for Financial Reporting.
aggregation
The adding together of assets, liabilities, equity,
income or expenses that have shared characteristics
and are included in the same classification.
CF.7.20
asset
A present economic resource controlled by the
entity as a result of past events.
CF.4.3
carrying amount
The amount at which an asset, a liability or equity
is recognised in the statement of financial position.
CF.5.1
classification
The sorting of assets, liabilities, equity, income or
expenses on the basis of shared characteristics for
presentation and disclosure purposes.
CF.7.7
combined financial
statements
Financial statements of a reporting entity that
comprises two or more entities that are not all
linked by a parent-subsidiary relationship.
CF.3.12
consolidated
financial statements
Financial statements of a reporting entity that
comprises both the parent and its subsidiaries.
CF.3.11
control of an
economic resource
The present ability to direct the use of the economic
resource and obtain the economic benefits that may
flow from it.
CF.4.20
derecognition
The removal of all or part of a recognised asset or
liability from an entity’s statement of financial
position.
CF.5.26