FAC FINANCIAL ACCOUNTING AND REPORTING DEFINITION OF TERMS

FAC FINANCIAL ACCOUNTING AND REPORTING DEFINITION OF
TERMS

The Statement of Financial Position - ✔✔ Contains information about the assets, liabilities and
equity.



The Statement of Profit or Loss and Other Comprehensive Income - ✔✔ Contains information
about income and expenses



Statement of Changes in Equity - ✔✔ A financial statement that summarises the changes in total
shareholders' equity, as well as each component of shareholders' equity, for a specific period of
time.



Statement of Cash Flows - ✔✔ Financial statement that reports cash receipts and disbursements
related to a firm's three major activities: operations, investments, and financing.



Going Concern Assumption - ✔✔ The assumption that the company will continue in operation
for the foreseeable future.



An Asset - ✔✔ A present economic resource, controlled by a reporting entity as a result of past
events.



An Economic Resource - ✔✔ A right that has the potential to produce economic benefits.



A Liability - ✔✔ A present obligation of a reporting entity to transfer an economic resource as a
result of past events.