- •Unit 13 accounting
- •Accounting principles and concepts
- •Accountancy in a free-market economy
- •Public and private accountants
- •Vocabulary list
- •Exercises
- •Accountancy Profession
- •Discussion
- •Accounting Methods
- •Reading practice
- •Profit and Loss Account
- •Financial Statements And Their Elements a. Balance sheet
- •Liabilities
- •B. Income statement/profit and loss statement
- •Revenues
- •Expenses
- •Gains and losses
Gains and losses
Gains are increases in equity that result from transactions that are incidental to the enterprise's activities and from other transactions, events or circumstances affecting the enterprise during a period, except those that result in revenues or equity contributions.
Losses are decreases in equity that result from transactions that are incidental to the enterprise's activities and from other transactions, events or circumstances affecting the enterprise during a period, except those that result in expenses or distributions of equity.
Gains are normally recognized when realized. Losses are normally recognized when realised or when it becomes evident that there is an impairment in the value of the assets, or an increase in the liabilities, to which the losses relate.
Based on: Objectives and Concepts
Underlying Financial Statements, ISAR, 1989