• Statement of Financial Position( SOFP )
• Statement of Profit or Loss( SOPL )
• Statement of Comprehensive Income( SOCI):

statement of profit or loss plus and any comprehensive income(This includes items that are not part of net income but still affect a company's equity)



• Capital is the net asset of buisness.
• Net asset is the difference of assets and liability.
• Financial Activities;

1. Income is generated when SALES are made
2. Expenses incur when PURSHASES are made

• Revenue is generated from ordinary activities but Gain on the other hand is generated from one time activity, lets say a buisness sells its delivery van in a higher price then gain occurs.
• Expenditure can be divided into;

1. Asset Expenditure
2. Expense

• Cost incurred for improving/maintaining a non-current asset is also considered as asset expenditure
• Income - Revenue, Gain
• Expenditure - Asset, Expense