Scribd Logo
Upload

Welcome to Scribd!

  • 7 views

    Economic Resource Is A Right That Has The Potential To Produce Economic

    Uploaded by

    Jashen Gatan
    The document defines the key elements of financial statements as assets, liabilities, and equity. It describes assets as economic resources controlled by an entity from past events that have the potential to produce future economic benefits. Liabilities are obligations of an entity to transfer economic benefits, and equity is the residual interest in an entity's assets after deducting liabilities. Financial performance is measured through income, which increases equity, and expenses, which decrease equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content

    You might also like

    Economic Resource Is A Right That Has The Potential To Produce Economic

    Uploaded by

    Jashen Gatan
    7 views1 page
    The document defines the key elements of financial statements as assets, liabilities, and equity. It describes assets as economic resources controlled by an entity from past events that have the potential to produce future economic benefits. Liabilities are obligations of an entity to transfer economic benefits, and equity is the residual interest in an entity's assets after deducting liabilities. Financial performance is measured through income, which increases equity, and expenses, which decrease equity.

    Original Description:

    Accountancy Reviewer

    Original Title

    Accountancy Reviewer

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document defines the key elements of financial statements as assets, liabilities, and equity. It describes assets as economic resources controlled by an entity from past events that have the potential to produce future economic benefits. Liabilities are obligations of an entity to transfer economic benefits, and equity is the residual interest in an entity's assets after deducting liabilities. Financial performance is measured through income, which increases equity, and expenses, which decrease equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    7 views1 page

    Economic Resource Is A Right That Has The Potential To Produce Economic

    Uploaded by

    Jashen Gatan
    The document defines the key elements of financial statements as assets, liabilities, and equity. It describes assets as economic resources controlled by an entity from past events that have the potential to produce future economic benefits. Liabilities are obligations of an entity to transfer economic benefits, and equity is the residual interest in an entity's assets after deducting liabilities. Financial performance is measured through income, which increases equity, and expenses, which decrease equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Part :

    i. ELEMENTS OF FINANCIAL STATEMENT


    Financial statements portray the financial effects of transactions and other events
    by grouping them into broad classes according to their economic characteristics.
    Those broad classes are termed the elements of financial statements.
    refer to the quantitative information reported in the

    Financial Position Financial Performance

    Measurement of Financial Position


    A. Asset. Present economic resource controlled by the entity as a result of past
    events.
    ESSENTIAL CHARACTHERISTICS OF ASSET
    a. Asset is a present economic resource.
    Economic Resource is a right that has the potential to produce economic
    benefits. That the potential economic benefits no longer need to be expected to
    flow to the entity.
    b. Economic resource is a right that has the potential to produce economic benefits.
    - Rights that correspond to an obligation of another entity
    - Rights that do not correspond to an obligation of another entity
    - Rights established by contract or legislation
    c. Economic resource is controlled by the entity as a result of past events

    B. Liability.
    C. Equity. Residual interest in the assets of the entity after deducting all of the
    liabilities. (Note: Conceptual Framework identifies no elements that are unique to the
    statement of changes in equity because such statement comprises items that appear in the
    statement of financial position and the income statement.)

    Measurement of Financial Performance


    a. Income.
    b. Expenses.

    You might also like