Page 34 - PowerPoint Presentation

THE CONCEPTUAL FRAMEWORK

Elements Of The Financial Statements

Equity

• Definition:

• The residual interest in the assets of the entity after deducting all

its liabilities.
Income

• Definition:

• Income includes gains and revenue.

• Revenue arises from ordinary activities of an entity.

• Gains may or may not arise from ordinary activities of any entity.

• Recognition:

• When an increase in future economic benefits related to an

increase in an asset or decrease of a liability has arisen that can be

measured reliably
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