Elements of Financial Statement

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Basic Elements (2 of 6)
Assets. Probable future economic benefits obtained or
controlled by a particular entity as a result of past
transactions or events.
Liabilities. Probable future sacrifices of economic
benefits arising from present obligations of a particular
entity to transfer assets or provide services to other
entities in the future as a result of past transactions or
events.
Equity. Residual interest in the assets of an entity that
remains after deducting its liabilities.
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Basic Elements (3 of 6)
Investments by Owners. Increases in net assets of a
particular enterprise resulting from transfers to it from
other entities of something of value to obtain or increase
ownership interests (or equity) in it.
Distributions to Owners. Decreases in net assets of a
particular enterprise resulting from transferring assets,
rendering services, or incurring liabilities by the
enterprise to owners.

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Basic Elements (4 of 6)
Comprehensive Income. Change in equity (net assets) of
an entity during a period from transactions and other
events and circumstances from nonowner sources.

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Basic Elements (5 of 6)
Revenues. Inflows or other enhancements of assets of an
entity or settlement of its liabilities (or a combination of
both) during period from delivering or producing goods,
rendering services, or other activities that constitute the
entity’s ongoing major or central operations.
Expenses. Outflows or other using up of assets or
incurrences of liabilities (or a combination of both) during
a period from delivering or producing goods, rendering
services, or carrying out other activities that constitute
the entity’s ongoing major or central operations.
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Basic Elements (6 of 6)
Gains. Increases in equity (net assets) from peripheral or
incidental transactions of an entity and from all other
transactions and other events and circumstances
affecting the entity during a period except those that
result from revenues or investments by owners.
Losses. Decreases in equity (net assets) from peripheral
or incidental transactions of an entity and from all other
transactions and other events and circumstances
affecting the entity during a period except those that
result from expenses or distributions to owners.

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IFRS Insights (8 of 10)
About the Numbers
Financial Statement Elements
While the conceptual framework that underlies IFRS is very similar to that
used to develop GAAP, the elements identified and their definitions
under IFRS are different. The IASB elements and their definitions are as
follows.
Assets. 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.
Liabilities. 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.
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IFRS Insights (9 of 10)
About the Numbers
Financial Statement Elements
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.

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Chart of Accounts (2 of 2)
Assets Stockholders’ Equity
101 Cash 311 Common Stock
112 Accounts Receivable 320 Retained Earnings
113 Allowance for Doubtful Accounts 332 Dividends
126 Supplies 350 Income Summary
130 Prepaid Insurance
157 Equipment Revenues
158 Accumulated Depreciation—Equipment 400 Service Revenue
Liabilities Expenses
200 Notes Payable 631 Supplies Expense
201 Accounts Payable 711 Depreciation Expense
209 Unearned Service Revenue 722 Insurance Expense
212 Salaries and Wages Payable 726 Salaries and Wages Expense
230 Interest Payable 729 Rent Expense
732 Utilities Expense
905 Interest Expense
919 Bad Debt Expense
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