TaxTMI 
TaxTMI 
Elements of Financial Statements
X X X X Extracts X X X X
X X X X Extracts X X X X
....y the entity as a result of past events. Legal ownership of a physical objects may give rise to several rights, including: * The right to use the object * The right to sell rights over the object; * The right to pledge rights over the object; and * Other rights Potential to produce economic benefits - An asset could produce economic benefits for an entity by way of receipt of contractual....
X X X X Extracts X X X X
X X X X Extracts X X X X
....satisfied - * The entity has an obligation * The obligation is to transfer economic resources; and * The obligation is a present obligation that exist as a result of past events. Obligation - Obligations are * Contractual * Legal * Customary practices, published polices, public statements made. * Duty or responsibility which cannot be avoid. * Exist on the balance sheet date. Tra....
X X X X Extracts X X X X
X X X X Extracts X X X X
....transfer an economic resources that it would not otherwise have had to transfer. Equity - Equity is the owner's interest in the company determined by deducting liabilities from the net assets of the company, Equity is residual interest where the entity has no obligation to pay and it is the amount left with the entity therefore Equity is not a liability. Income - Income is increase in economic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the same year i.e., 2018. Notes :- * Only items that meet the definition of an asset, a liability or equity are recognised in the balance sheet. similarly, only items that meet the definition of income or expenses in the statement of profit or loss. However, not all items that meet the definition of one of those elements are recognised. * Do not recognise the asset, liability, equity, income....