Αποτελέσματα Αναζήτησης
financial statements Changes are needed because: • Probability criterion viewed as inappropriate for some assets and liabilities. • ‘Reliability’ is not one of the qualitative characteristics.
For businesses, the use of a single, trusted accounting language derived from Standards based on the Conceptual Framework lowers the cost of capital and reduces international reporting costs. The objective of general purpose financial reporting forms the foundation of the Conceptual Framework.
FASB SFAC 63 explicitly defines 10 elements of a financial statement. Those elements are: assets, liabilities, equity, investments by owners, distributions to owners, comprehensive income, revenues, expenses, gains, losses. The elements of financial statements are the building blocks from which financial statements are constructed.
• Captures elements of both the income statement and balance sheet • Inflows and outflows of cash over a certain period of time • Allocates all cash going in and out of a company into three categories: operating, investing, and financing activities
Financial statements consist of ten elements that show the amounts, claims, and changes to an organization's resources. The ten elements of financial statements are: Assets, Liabilities, Equity, Revenues, Expenses, Gains, Losses, Comprehensive income, Investment by owners, & Distributions to owners.
UNDERSTANDING FINANCIAL STATEMENTS Financial statements provide the fundamental information that we use to analyze and answer valuation questions. It is important, therefore, that we understand the principles governing these statements by looking at four questions: • How valuable are the assets of a firm?
The purpose of this Statement is to establish definitions of the elements of financial statements (namely assets, liabilities, equity, revenues and expenses) and to specify criteria for their recognition in financial statements. "Assets" are future economic benefits controlled by the entity as a result of past transactions or other past events.
