|SFAC 6 defines 10 elements of financial statements. These
elements are the building blocks with which financial statements
are constructedthe classes of items that financial statements
comprise.33 They focus directly on items related to measuring
performance and to reporting financial position. The definitions
of these elements operationalize the resources, claims, and
changes identified in the third objective of financial reporting
in SFAC 1.34 The accrual accounting model actually is embodied
in the element definitions. The FASB recognized that accrual
accounting produces information that is more successful in
predicting future cash flows than is cash flow accounting.||
(K)| The 10 elements are: (1) assets, (2) liabilities, (3)
equity, (4) investments by owners, (5) distributions to owners,
(6) revenues, (7) expenses, (8) gains, (9) losses, and (10)
comprehensive income. |The 10 elements of financial statements
defined in SFAC 6 describe financial position and periodic
performance.| You probably already kn