1. 1 4. Conceptual Framework The elements of financial statements

2. 2 I have not failed. I've just found 10,000 ways that won't work. - Thomas Alva Edison (1847-1931)

3. 3 ELEMENTS Assets Liabilities Ownership interests (Equity) Gains (realised; unrealised) Losses (all forms) Contributions from owners Distributions to owners

4. 4 ELEMENTS Classification - essential CLASSIFY

5. 5 Assets Right or access to future economic benefits controlled from past transactions or events

6. 6 Assets Non-essential – Tangible – Exchangeable – Legally enforceable (superwipes)

7. 7 Assets (1) The right to future economic benefit (not the truck but the benefit from the truck) essential for measurement - an aspect of a thing. Eventually cash investments debtors prepayments

8. 8 Assets (2) CONTROL – Can assess benefits – Can regulate or deny access to others Need not be legally enforceable Only one entity can claim (for one aspect) Asset even if cant sell.

9. 9 Assets (3) PAST TRANSACTION OR EVENT

10. 10 Liabilities Obligations to transfer economic benefits as a result of part transactions or events. Present obligation Not able to avoid Need not be legally enforceable Decision to transfer not sufficient Certainty to transfer not required Amount may be uncertain

11. 11 Liabilities And from past transactions or events

12. 12 Liabilities - off-setting Offsetting rights and obligations (assets / liabilities – Is net settlement is available ? Wholly unperformed - yes Equally partially unperformed - yes

13. 13 Ownership Interest - Equity Residual

14. 14 Gains Increases in equity not from contributions from owners

15. 15 Losses Decreases in equity not from distributions to owners

16. 16 THE END If you have enjoyed yourselves... then do come back.

17. 17 A friendship founded on business is better than a business founded on friendship. John D. Rockefeller

18. 18 My advice to you is get married: if you find a good wife you'll be happy; if not, you'll become a philosopher. - Socrates (470-399 B.C.)