The elements of financial statements
The Framework
lays out these elements as follows:
A. Measurement of financial position in the statement
of financial position
-Asset
-Liabilities
-Equity
B. Measurement of performance in the income statement
-Income
-Expenses
Definition
Asset. A resource controlled by an entity as a result of past events and from
which future economic benefits are expected to flow to the entity.
Liability.
A present obligation of the entity arising from past events, the settlement of
which is expected to result in an outflow from the entity of resources
embodying economic benefits.
Equity.
The residual interest in the assets of the entity after deducting all its
liabilities. (Framework)
Income.
Increases in economic benefits during the accounting period in the form of
inflows or enhancements of assets or decreases of liabilities that result in
increases in equity, other than those relating to contributions from equity
participants.
Expenses.
Decreases in economic benefits during the accounting period in the form of
outflows or depletions of assets or incurrences of liabilities that result in
decreases in equity, other than those relating to distributions to equity
participants.