Financial elements

part 2 of ACC concepts

Asset

Potential economic benefit

Control

Past Event

Relevant

Faihtful representation

Liabilities

Present obligation

Transfer of economic resources

Past event

Relevant

Faithful representation

Equity

Equity is the difference between the assets and the liabilities

Income

Increase in assets or decrease in liabilities which results in an increase in equity (more profit), other than those contributions relating by the owner.

The increase in assets is the money that has been received from

Or the increase in assets is the money that is owed and expected to be received from

Relevant

Faithful representation

Expense

A decrease in assets or an increase in liability which results in a decrease in equity (less profit), other than those contributions relating to the owner.

The decrease in assets is the money that has been paid to

Or the increase in liabilities is the money that is owed and expected to be paid to

Relevant

Faithful representation