Financial Statement Component: The principle means of communicting useful financial information is the general purpose financial statement. A financial statement is made up of components.

Phase A of the conceptual framework project defined financial statements a company would report. Financial statements communicate information about the elements of a financial statement. These are outlined below (Note that "Related disclousres" has been broken down into more detailed categories):
  • Balance sheet - communicates the financial position of an entity as of end of the period. (A balance sheet reports assets, liabilities, and equity.)
  • Income statement - communicates the earnings for a period. (An income statement reports revenues, expenses, gains, losses.)
  • Statement of Comprehensive income - communicates changes in equity for a period from transactions other than investments by or distributions to owners.
  • Cash flow statement - communicates the cash flows for a period.
  • Statement of changes in equity - communicates the investments by owners and distributions to owners for a period. (A statement of changes in equity reports investments by owners and distributions to owners.)
  • Related disclosures- communicates additional details and can be brokend down into the following categories:
    • Organization
    • Consolidation
    • Basis of Reporting and Presentation of Financial Statements
    • Significant Accounting Policies
    • Disclosures, Financial Statement Accounts
    • Disclosures, Broad Transaction Categories