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.