Introduction
The elements of financial statements defined in the
Conceptual Framework are:
(a)
assets,
liabilities and equity, which relate to a reporting entity’s
financial position; and
(b)
income and expenses, which relate to a reporting entity’s financial
performance.
Those elements are linked to the economic resources,
claims and changes in
economic resources and claims discussed in Chapter 1, and are defined in
Table 4.1.
Table 4.1—The elements of financial statements
Item discussed in
Chapter 1
Element
Definition or description
Economic
resource
Asset
A present economic resource controlled by the
entity as a result of past events.
An economic resource is a right that has the
potential to produce economic benefits.
Claim
Liability
A present obligation of the entity to transfer an
economic resource as a result of past events.
Equity
The residual interest in the assets of the entity
after deducting all its liabilities.
Changes
in economic
resources and claims,
reflecting financial
performance
Income
Increases in assets, or decreases in liabilities,
that result in increases in equity, other than
those relating to contributions
from holders of
equity claims.
Expenses
Decreases in assets, or increases in liabilities,
that result in decreases in equity, other than
those relating to
distributions to holders of
equity claims.
Other changes in
economic resources and
claims
–
Contributions from holders of equity claims,
and distributions to them.
–
Exchanges of assets or liabilities that do not
result in increases or decreases in equity.
Dostları ilə paylaş: 
