TM1-1.

1, Definition for Accounting Lecture 3

Accounting is a way of recording, analyzing and summarizing transactions (ACCA 1.1)

TM2-3.1, Accounting Equation

Assets: Resources controlled by the entity Past Event Future economic benefit are expected to flow to the company

TM2-3.2, Accounting Equation

Liability: Present Obligation Past Event Settlement Future economic benefit are expected to outflow to the company

Complete set of financial statements

(a) a statement of financial position as at the end of the period; (b) a statement of comprehensive income for the period; (c) a statement of changes in equity for the period; (d) a statement of cash flows for the period; (e) notes and (f) a statement of financial position as at the beginning of the earliest comparative period when an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements, or when it reclassifies items in its financial statements.

Definition
Owners are holders of instruments (shares certificate) classified as equity. Profit or loss is the total of income less expenses, excluding the components of other comprehensive income. Reclassification adjustments are amounts reclassified to profit or loss in the current period that were recognised in other comprehensive income in the current or previous periods.

Statement of changes in equity Definition

Total comprehensive income is the change in equity during a period resulting from transactions and other events, other than those changes resulting from transactions with owners in their capacity as owners. Total comprehensive income comprises all components of profit or loss and of other comprehensive income.
An entity shall present : (a) total comprehensive income for the period, showing separately the total amounts attributable to owners of 1. parent and 2, non-controlling interests; (b) for each component of equity, the effects of retrospective application (c) for each component of equity, a reconciliation between the carrying amount at the beginning and the end of the period, separately disclosing each changes. resulting from: (i) profit or loss; (ii) each item of other comprehensive income; and (iii) transactions with owners in their capacity as owners, showing separately contributions by and distributions to owners and changes in ownership interests in subsidiaries not result in a loss of control.

A statement of comprehensive income

The components of other comprehensive income include: (a) changes in revaluation surplus (see HKAS 16 Property, Plant and Equipment and HKAS 38 Intangible Assets); (b) actuarial gains and losses on defined benefit plans recognised in accordance with paragraph 93A of HKAS 19; (c) gains and losses arising from translating the financial statements of a foreign operation (see HKAS 21); (d) gains and losses on re-measuring available-for-sale financial assets (see HKAS 39); (e) the effective portion of gains and losses on hedging instruments in a cash flow hedge (see HKAS 39).