Accounting Basics and Elements of Financial Statements

Rise school is Best School of Accountancy in Lahore.CA admissions in Lahore now open. The best School of Accountancy in Pakistan offers CA in Lahore and Best CA in Pakistan.

They are each of the assets , rights and obligations that form part of the assets of companies . The conceptual framework of the International Accounting Standards Board (IASB) defines five basic elements of accounting:

Active .

Liabilities .

Capital

Expenses (expenses).

Income .

All of these must follow a logical route for proper accounting, whose steps are reflected in the financial statements:

Definition.

Recognition

Measurement.

Patrimonial masses

Main articles: Equity and accounting equation .

The assets of a company are the set of assets, rights and obligations relating to a company that constitute the economic and financial means through which it can meet its objectives. 14

The patrimony is formed by many elements of a very disparate character, so it is called, as already mentioned, patrimonial element to each of the assets, rights and obligations that are part of the company.

For the purposes of its valuation, the assets consist of a positive part (assets), constituted by the assets (material elements), as well as the rights (intangible elements) derived from legal relationships of the company and a negative part ), Formed by the obligations. The algebraic sum of the positive value of the assets and rights, together with the negative value of the obligations would result in the value of the net worth.