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The Conceptual Framework
Elements of financial statements
4.1 Assets
An asset is a resource controlled by the enterprise as a result of a
past event and from which economic benefits are expected to flow to
the enterprise.
4.2 Liability
A liability is a present obligation arising from past events, the
settlement of which is expected to result in an outflow of resources
from the enterprise.
4.3 Equity
Equity is the residual interest in the assets of the enterprise after
deducting all its liabilities.
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