Elements of

Financial Statements
Statement of Financial Position
A statement listing the assets, liabilities and equity of an enterprise as of
a given date.
Statement of Comprehensive Income
A statement that presents information on the change in equity during a
period resulting from transaction and other events, other than those
changes resulting transactions with owners in their capacity as owners.
The statement has two sections: (1) the profit or loss section and (2) the
other comprehensive income.
Statement of Changes in Equity
A statement that shows the changes in each equity account during a
reporting period showing a reconciliation of the beginning balances of
equity accounts to the final balances shown on the statement of financial
position.
Statement of Cash Flow
A Statement showing the historical changes in cash and cash equivalents
classified into operating activities, investing activities and financing
activities.
Notes to the Financial Statements
These are non quantitative and qualitative information about an
enterprise that are considered significant and relevant to the needs of the
users, and/ or information required to be disclosed by specific
accounting standards but are not appropriately presented on the face of
the Financial Statements.
Assets: 
is recognized in the balance sheet when it is probable that the future
economic benefits will flow to the entity and the asset has a cost or
value that can be measured reliably. The economic benefits contribute,
directly or indirectly, in the form of cash or cash equivalents. Even
though many assets are in physical form, such as machinery, the
physical form is not essentials. For example, patents and intellectual
property are assets controlled by the entity and have future economic
benefits.
Liabilities:
is recognized in the balance sheet when it is probable that an outflow of
resources embodying economic benefits will result from the settlement
of a present obligation and the amount at which the settlement will take
place can be measured reliably. For example, accounts payables are
present obligations, which will result in an outflow of resources
embodying economic benefits
Equity:
Residual Interest in the assets of the enterprise after deducting all its
liabilities
Income: 
is recognized in the income statement when an increase in future
economic benefits related to an increase in an asset or a decrease of a
liability has arisen that can be measured reliably. In effect, the
recognition of income occurs simultaneously with the recognition of
increases in assets or decreases in liabilities. For example, when a sale is
made, it results in a net increase in assets (cash). Income includes both
revenues and gains, such as from sale of assets that are not a part of the
normal business activity.
Expenses: 
are recognized when a decrease in future economic benefits related to a
decrease in an asset or an increase of a liability has arisen that can be
measured reliably. In effect, the recognition of expenses occurs
simultaneously with the recognition of an increase in liabilities or a
decrease in assets. For example, the depreciation of an asset decreases
the asset and the expense is recognized. Expenses include both expenses
and losses.