Elements Of FS & The Accounting Equation
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University of Galway
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Summary
This document discusses the elements of financial statements, including assets and liabilities. It defines assets as present economic resources controlled by an entity resulting from past events. Current and non-current assets are distinguished, along with various types of each.
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Elements of Financial Statements Universit y ofGalway. ie Assets ‘an asset is owned by its owner and is worth something to its owner’ ‘any right which is of economic value to its owner’ (Gillesipe & Lewis, Princi...
Elements of Financial Statements Universit y ofGalway. ie Assets ‘an asset is owned by its owner and is worth something to its owner’ ‘any right which is of economic value to its owner’ (Gillesipe & Lewis, Principles of Financial Accounting) Universit y ofGalway. ie Assets For accounting purposes however we need to be more exact: ‘An asset is a present economic resource controlled by the entity as a result of past events’ (IASB, Conceptual Framework 2018) Universit y ofGalway. ie Assets Non-Current Assets (>12 mths): Acquired by the business with the intention of retaining them within the business to help generate profit Property, plant and equipment Investment property Financial assets Intangible assets Universit y ofGalway. ie Assets Universit y ofGalway. ie Assets Current Assets (12mths): Long Term Borrowings Deferred Tax Long Term Provisions Universit y ofGalway. ie Liabilities Current Liabilities (
