Liabilities are the future sacrifices of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events. (para. 48)
A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. (para. 49(b))
Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. (para. 35)
Liabilities are an entity's obligation to transfer economic benefits as a result of past transactions or events. (para. 24)
Liabilities are the future sacrifices of service potential or of future economic benefits that the entity is presently obliged to make to other entities as a result of past transactions or other past events. (para. 7.10)
Liabilities are obligations of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. (para. 32)
EQUITY
Equity is the residual interest in the assets of the entity after deduction of its liabilities. (para. 78)
Equity is the residual interest in the assets of the enterprise after deducting all its liabilities. (para. 49(c))
Equity or net assets is the residual interest in the assets of an entity that remains after deducting its liabilities. (para. 49)
Equity is the ownership interest in the entity: it is the residual amount found by deducting all liabilities of the entity from all of the entity's assets. (para. 44)
Equity is the residual interest in the assets of the entity after deduction of its liabilities. (para. 7.15)
Equity is the ownership interest in the assets of a profit oriented enterprise after deducting its liabilities. While equity of a profit oriented enterprise in total is a residual, it includes specific categories of items, for example, types of share capital, contributed surplus and retained earnings. (para. 35)
In the case of a non-profit organisation, net assets, sometimes referred to as equity or fund balances, is the residual interest in its assets after deducting its liabilities. Net assets may include specific categories of items that may be either restricted or unrestricted as to their use. (para. 36)
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Australia IASC & South Africa United States United Kingdom New Zealand Canada
REVENUES
Revenues are inflows or other enhancements, or savings in outflows, of future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity during the reporting period. (para. 111)
Income is increases in economic benefits during the accounting period in the form of inflows or enhancements of assets or decreases of liabilities that result in increases in equity, other than those relating to contributions from equity participants. (para. 70(a))
Revenues are inflows or other enhancements of assets of an entity or settlements of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or other activities that constitute the entity's ongoing major or central operations. (para. 78)
Gains are increases in equity, other than those relating to contributions from owners. (para. 52)
Revenues are inflows or other enhancements, or savings in outflows, of service potential or future economic benefits in the form of increases in assets or reductions in liabilities of the entity, other than those relating to contributions by owners, that result in an increase in equity during the reporting period. (para. 7.19)
Revenues are increases in economic resources, either by way of inflows or enhancements of assets or reductions of liabilities, resulting from the ordinary activities of an entity. Revenues of entities normally arise from the sale of goods, the rendering of services or the use by others of entity resources yielding rent, interest, royalties or dividends. In addition, many non- profit organisations receive a significant proportion of their revenues from donations, government grants and other contributions. (para. 37)
Gains are increases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from revenues or investments by owners. (para. 82)
Gains are increases in equity/net assets from peripheral or incidental transactions and events affecting an entity and from all other transactions, events and circumstances affecting the entity except those that result from revenues or equity/net assets contributions. (para. 39)
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Australia IASC & South Africa United States United Kingdom New Zealand Canada
EXPENSES
Expenses are consumptions or losses of future economic benefits in the form of reductions in assets or increases in liabilities of the entity, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period. (para. 117)
Expenses are decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities that result in decreases in equity, other than those relating to distributions to equity participants. (para. 70(b))
Expenses are outflows or other using up of assets or incurrences of liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major or central operations. (para. 80)
Losses are decreases in equity, other than those relating to distributions to owners. (para. 52)
Expenses are consumptions or losses of service potential or future economic benefits in the form of reductions in assets or increases in liabilities of the entity, other than those relating to distributions to owners, that result in a decrease in equity during the reporting period. (para. 7.22)
Expenses are decreases in economic resources, either by way of outflows or reductions of assets or incurrences of liabilities, resulting from an entity's ordinary revenue generating or service delivery activities. (para. 38)
Losses are decreases in equity (net assets) from peripheral or incidental transactions of an entity and from all other transactions and other events and circumstances affecting the entity except those that result from expenses or distributions to owners. (para. 83)
Losses are decreases in equity/net assets from peripheral or incidental transactions and events affecting an entity and from all other transactions, events and circumstances affecting the entity except those that result from expenses or distributions of equity/net assets. (para. 40)
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TABLE − International Comparison: Conceptual Framework Recognition Criteria
Australia: New Zealand SAC 4 & Statement
IASC Framework & South Africa: Section AC 000
United States: SFAC No. 5 United Kingdom Draft Framework: Chapter 4 An item that meets the definition
of an element should be recognised when and only when:
An item that meets the definition of an element should be recognised if:
An item and information about it should meet four fundamental recognition criteria to be recognized and should be recognized when the criteria are met, subject to a cost-benefit constraint and a materiality threshold. Those criteria are:
An item should be recognised in financial statements if:
Definitions – The item meets the definition of an element of financial statements;2
(a) the item meets the definition of an element of financial statements;
(a) it is probable that the future economic benefits or future sacrifice of those benefits will eventuate, or that a change in those benefits has occurred; and
(a) it is probable that any future economic benefit associated with the item will flow to or from the enterprise; and
(b) there is sufficient evidence that the change in assets or liabilities inherent in the item has occurred (including, where appropriate, evidence that a future inflow or outflow of benefit will occur); and (b) the item can be measured
reliably.
(b) the item has a cost or value that can be measured with reliability. (para. 83)
Measurability – It has a relevant attribute measurable with sufficient reliability;
(c) the item can be measured at a monetary amount with sufficient reliability. (para. 4)
Relevance – The information about it is capable of making a difference in user decisions; and
Reliability – The information is representationally faithful, verifiable, and neutral. (para. 63)
1 SAC 4 and the New Zealand Statement of Concepts do not specify general criteria for recognition of the elements of financial statements. The general criteria set out here are a summary of the
recognition criteria specified in those Statements in respect of each element other than equity. Those particular recognition criteria are virtually identical in respect of both Statements.
2 The definitions of assets and liabilities in SFAC 6 incorporate the concept of probable future economic benefits and probable future sacrifices of economic benefits. The concept of "probable" is