Question

Which three of the following are elements of financial statements as identified by the IASB's Conceptual Framework?

A Income
B Expenses
C Profits
D Losses
E Obligations
F Resources
G Equity

Answer 1

The IASB's Conceptual Framework identifies income, expenses, and equity as three key elements of financial statements, which are instrumental in assessing a company's financial status.

Step-by-step explanation:

The three elements of financial statements identified by the IASB's Conceptual Framework are income, expenses, and equity.

These elements are crucial for providing a clear and accurate picture of a company's financial health. Income refers to the inflows of assets or decreases in liabilities that result in an increase in equity, other than those relating to contributions from equity participants.

Expenses involve outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. Equity represents the residual interest in the assets of the entity after deducting all its liabilities.

The IASB's Conceptual Framework identifies income, expenses, and equity as three key elements of financial statements, which are instrumental in assessing a company's financial status.