Part II
Looking at the Key Components of Financial Statements
In this part . . .
A set of financial statements has many components, all with very different messages to their users. Assets, liabilities, income, equity and expenses are the major components of a set of financial statements, and the values placed on these have a considerable impact on the financial statements.
In this part of the book, I examine the key components of the financial statements. I start by looking at what assets and liabilities are and how you account for them, and I also cover some of the more uncommon assets and liabilities. Then I examine how you account for revenue (sales), and finish off by considering the equity section of the statement of financial position (balance sheet).
