CON 6 - CON 6 ELEMENTS OF FINANCIAL STATEMENT FOR BUSINESS...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
CON 6 ELEMENTS OF FINANCIAL STATEMENT FOR BUSINESS ENTITIES
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Elements of financial statements Elements of financial statements are the building blocks with which financial statements are constructed. The items in financial statements represent in words and numbers a certain entity’s resources, claims to those resources and the effects of transactions and other events and circumstances that result in changes in those resources and claims.
Background image of page 2
Interrelation of Elements – Articulation Elements of financial statements are of two different types: one type is assets, liabilities and equity and the other type is comprehensive income and its components These two types are fundamentally interrelated so that financial statements that show elements of the second type depend on the statements that show elements of the first type and vice versa.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ASSETS Probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
Background image of page 4
THREE CHARACTERISTICS - ASSETS Future economic benefits Evidence of future economic benefits A market price paid for acquisition of the individual items, a basket purchase of several items or in a business combination Anything that creditors or others commonly accept in settlement of liabilities Anything that is commonly used to produce goods or services Incurrence of costs Two other conditions Whether the item obtained by the entity embodied future economic benefit in the first place
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 21

CON 6 - CON 6 ELEMENTS OF FINANCIAL STATEMENT FOR BUSINESS...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online