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Glossary of FRA 1 Elements of Financial Statements Ch 2

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Assets
Probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.
Liabilities
Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.
Equity
Residual interest in the assets of an entity tht remains after deducting its liabilities. In a business enterprise, the equity is the ownership interest.
Investments by Owners
Increases in net assets of a particular enterprise resulting from other entities of something of value to obtain or increase ownership interests (or equity) in it. Assets are most commonly received as investments by owners, but that which is received may also include services or satisfaction or conversion of liabilities of the enterprise.
Distributions to Owners
Decreases in net assets of a particular enterprise resulting from transferring assets, rendering services, or incurring liabilities by the enterprise to owners. Distributions to owners decrease ownership interests (or equity) in an enterprise.
Comprehensive Income
change in equity (net assets) of an entity during a period from transactions and other events and ircumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Revenues
Inflows or other enhancements of assets of an entity or settlement of its liabilities (or a combination of both) during a period from deliviering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.
Expenses
Outflows or other using up of assets or incurrences of liabilities (or a combination of both) during a period from deliviering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations.
Gains
Increases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments by owners.
Losses
Decreases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity during a period except those that result from revenues or investments by owners.

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