This document discusses common elements of financial statements. It identifies key components such as assets, liabilities, equity, revenues, and expenses. It also notes the accounting equation of assets equaling liabilities plus equity. Additionally, it outlines new terms, structures, and assertions that have been added to financial statements over time, making them more robust. The document aims to define and explain the core building blocks that comprise financial statements.

1. Common Elements of
Financial Statements
Charles Hoffman, CPA (Charles.Hoffman@me.com)
March 9, 2020

2. Common Elements of Financial Statements
• Files: http://xbrlsite.azurewebsites.net/2019/core/master-common/
• Documentation:
http://xbrlsite.azurewebsites.net/2019/core/common/CommonElementsOfFinancialStatement.pdf

3. Common Elements of Financial Statements
• Accounting Equation
• Assets, Liabilities, Equity
• Assets = Liabilities + Equity
• SFAC 6 Elements of Financial Statements
• Assets, Liabilities, Equity, Comprehensive Income, Investments by Owners,
Distributions to Owners, Revenues, Expenses, Gains, Losses
• Assets = Liabilities and Equity
• Comprehensive Income = Revenues – Expenses + Gains – Losses
• EquityT1 = EquityT0 + Comprehensive IncomeP1 + Investments by OwnersP1 –
Distributions to OwnersP1
• Common Elements of Financial Statements

4. Common Elements of Financial Statements
• Terms (16 more to 10 that existed)
• Current Assets
• Noncurrent Assets
• Current Liabilities
• Noncurrent Liabilities
• Equity Attributable to Controlling Interests
• Equity Attributable to Noncontrolling Interests
• Liabilities and Equity
• Net Cash Flow
• Net Cash Flow from Operating Activities
• Net Cash Flow from Investing Activities
• Net Cash Flow from Financing Activities
• Net Assets
• Net Income
• Income from Ordinary Activities of Entity
• Income from Peripheral or Incidental Transactions of Entity
• Other Comprehensive Income

5. Common Elements of Financial Statements
• Structures (4 more to 3 that existed)
• Net Assets Statement
• Comprehensive Income 2
• Comprehensive Income 3
• Cash Flow Statement

6. Common Elements of Financial Statements
• Assertions (2 more to 3 that existed)
• AssetsT1 = AssetsT0 + Net Cash FlowP1
• Net Assets = Assets - Liabilities

7. Four Statement Model (Rather than 3)

9. Common Elements of Financial Statements
• Physically looks closer to a real financial statement, but not quite
• Bottom line: More of the same things
• More terms
• More structures
• More associations
• More assertions
• Roll ups
• Roll forwards