The following is a set of fundamental accounting relations between high-level accounting concepts found on the primary financial statements which are true of every financial report.

Balance sheet:
  • Assets = Liabilities + Equity
  • Assets = Liabilities And Equity
  • Assets = Current Assets + Noncurrent Assets
  • Noncurrent Assets = Assets - Current Assets
  • Liabilities And Equity = Liabilities + CommitmentsAndContingencies + TemporaryEquity + Equity
  • Equity = Equity Attributable To Parent + Equity Attributable To Noncontrolling Interest
  • Current Assets = Assets - Noncurrent Assets
  • Liabilities = Current Liabilities + Noncurrent Liabilities
  • Liabilities And Equity = Liabilities + Commitments And Contingencies + Temporary Equity + Equity
  • Noncurrent Liabilities = Liabilities - Current Liabilities
  • Liabilities = Liabilities And Equity - Equity
  • Long-term Debt = Current Portion of Long-term Debt + Noncurrent Portion of Long-term Debt

Income statement:
  • Gross Profit = Revenues - Cost Of Revenue
  • Revenues = Gross Profit + Cost of Revenue
  • Revenues = Operating Income (Loss) + Costs And Expenses - Other Operating Income
  • Operating Income (Loss) = Gross Profit - Operating Expenses + Other Operating Income (Multi-step approach)
  • Operating Income (Loss) = Revenues - Costs And Expenses + Other Operating Income (Single-step approach)
  • Income (Loss) Before Equity Method Investments = Operating Income (Loss) + Nonoperating Income (Loss) - Interest And Debt Expense
  • Income (Loss) From Continuing Operations Before Tax = Income (Loss) Before Equity Method Investments + Income (Loss) From Equity Method Investments
  • Income (Loss) From Continuing Operations After Tax = Income (Loss) From Continuing Operations Before Tax - Income Tax Expense (Benefit)
  • Net Income (Loss) = Income (Loss) From Continuing Operations After Tax + Income (Loss) From Discontinued Operations + Extraordinary Items Of Income (Loss)
  • Net Income (Loss) = Net Income (Loss) Attributable To Parent + Net Income (Loss) Attributable To Noncontrolling Interest
  • Net Income (Loss) = Operating Income (Loss) + Nonoperating Income (Loss) - Interest And Debt Expense + Income (Loss) From Equity Method Investments - Income Tax Expense (Benefit) + Income (Loss) From Discontinued Operations + Extraordinary Items Of Income (Loss)
  • Net Income (Loss) Available to Common Stockholders, Basic = Net Income (Loss) Attributable to Parent - Preferred Stock Dividends and Other Adjustments

Statement of comprehensive income:
  • Comprehensive Income (Loss) = Net Income (Loss) + Other Comprehensive Income (Loss)
  • Comprehensive Income (Loss)= Comprehensive Income (Loss) Attributable to Parent + Comprehensive Income (Loss) Attributable to Noncontrolling Interest
  • Other Comprehensive Income (Loss) = Foreign Currency Translation Adjustments + Adjustments To Postretirement Benefit Plans + Deferred Gains (Losses) From Derivatives + Available ForSale Securities Adjustments + Other Than Temporary Imparment Of Investments

Cash flow statement:
  • Net Cash Flows = Net Cash Flows Operating Activities + Net Cash Flows Investing Activities + Net Cash Flows Financing Activities + Net Cash Flows Discontinued Operations + Exchange Gains (Losses)
  • Net Cash Flows Operating Activities = Net Cash Flows Operating Activities Continuing Operations + Net Cash Flows Operating Activities Discontinued Operations
  • Net Cash Flows Investing Activities = Net Cash Flows Investing Activities Continuing Operations + Net Cash Flows Investing Activities Discontinued Operations
  • Net Cash Flows Financing Activities = Net Cash Flows Financing Activities Continuing Operations + Net Cash Flows Financing Activities Discontinued Operations
  • Net Cash Flows Discontinued Operations = Net Cash Flows Operating Activities Discontinued Operations + Net Cash Flows Investing Activities Discontinued Operations + Net Cash Flows Financing Activities Discontinued Operations
  • Net Cash Flows Continuing Opertaions = Net Cash Flows Operating Activities Continuing Operations + Net Cash Flows Investing Activities Continuing Operations + Net Cash Flows Financing Activities Continuing Operations


Explicit definitions of these concepts are coming soon!