Financial Accounting Standards Board

ORIGINAL
PRONOUNCEMENTS
AS AMENDED

Statement of Financial Accounting

Concepts No. 3
Elements of Financial Statements of Business
Enterprises

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Accounting Standards Board.

CON3

Statement of Financial Accounting Concepts No. 3

Elements of Financial Statements of Business
Enterprises
STATUS
Issued: December 1980
Affects: No other pronouncements
Affected by: Superseded by CON 6, paragraph 2
Concepts Statement No. 6 replaces Concepts Statement No. 3 expanding its scope to encompass
not-for-profit organizations. Below is a cross-reference list showing where paragraphs that were in Concepts
Statement No. 3 may now be found in Concepts Statement No. 6.
Concepts Statements
No. 3
No. 6
Paragraph
Paragraph
Numbers
Numbers
Introduction...................................................................................................................
Scope and Content of Statement ............................................................................
Other Possible Elements of Financial Statements ............................................
Elements and Financial Representations...........................................................
Other Scope and Content Matters......................................................................
Objectives, Qualitative Characteristics, and Elements .........................................
Interrelation of ElementsArticulation ................................................................
Definition, Recognition, Measurement, and Display ...........................................
Definitions of Elements ...............................................................................................
Assets........................................................................................................................
Characteristics of Assets .....................................................................................
Transactions and Events That Change Assets...................................................
Valuation Accounts..............................................................................................
Liabilities..................................................................................................................
Characteristics of Liabilities ...............................................................................
Transactions and Events That Change Liabilities.............................................
Valuation Accounts..............................................................................................
Effects of Uncertainty..............................................................................................
Note on Uncertainty and Certain Recognition Matters....................................
Equity........................................................................................................................
Characteristics of Equity of Business Enterprises ............................................
Equity and Liabilities ..........................................................................................
Transactions and Events That Change Equity ..................................................
Investments by and Distributions to Owners ........................................................
Characteristics of Investments by and Distributions to Owners......................
Comprehensive Income of Business Enterprises..................................................
Concepts of Capital Maintenance......................................................................
Characteristics, Sources, and Components of Comprehensive Income .........

CON31

1
1
3
5
9
14
16
18
19
20
25
28
29
34
37
43
44
48
50
52
54
56
57
59

17
8
4
7
8
13
15
17
89
27
24
26
27
36
33
35
36
42
42
51
47
49
51
55
55
62
58
62

1
1
3
5

23
8
4
7
8
9 19
20 21
22 23
24133
25 34
26 31
32 33
34
35 43
36 40
41 42
43
44 48
deleted
49 65
60 63
54 59
64 65
66 69
68 69
70 77
71 72
73 77

CON3

FASB Statement of Concepts

Concepts Statements
No. 3
No. 6
Paragraph
Paragraph
Numbers
Numbers
Revenues ..................................................................................................................
Characteristics of Revenues................................................................................
Expenses...................................................................................................................
Characteristics of Expenses................................................................................
Gains and Losses .....................................................................................................
Characteristics of Gains and Losses ..................................................................
Revenues, Expenses, Gains, and Losses ...........................................................
Accrual Accounting and Related Concepts ...............................................................
Transactions, Events, and Circumstances..............................................................
Accrual Accounting.................................................................................................
Accrual and Deferral (Including Allocation and Amortization) ..........................
Realization and Recognition...................................................................................
Recognition, Matching, and Allocation .................................................................
Appendix A: Background Information ......................................................................
Appendix B: Characteristics of Assets, Liabilities, and Equity or Net Assets
and of Changes in Them............................................................................................
Purpose and Summary of Appendix ......................................................................
Characteristics of Assets..........................................................................................
Future Economic Benefits ..................................................................................
Assets and Costs..............................................................................................
Control by a Particular Entity.............................................................................
Control and Legal Rights ...............................................................................
Noncontrolled Benefits...................................................................................
Occurrence of a Past Transaction or Event .......................................................
Characteristics of Liabilities....................................................................................
Required Future Sacrifice of Assets...................................................................
Liabilities and Proceeds..................................................................................
Obligation of a Particular Entity ........................................................................
Occurrence of a Past Transaction or Event .......................................................
Characteristics of Equity of Business Enterprises.................................................
Residual Interest ..................................................................................................
Invested and Earned Equity................................................................................
Characteristics of Comprehensive Income of Business
Enterprises and Its Components...........................................................................
Interest in Information about Sources of Comprehensive Income .................
Examples to Illustrate Concepts .............................................................................
Deferred Gross Profit on Installment Sales.......................................................
Debt Discount, Premium, and Issue Cost..........................................................
Deferred Income Tax Credits .............................................................................
Deferred Investment Tax Credits .......................................................................
Deferred Costs of Assets.....................................................................................
Estimated Loss on Purchase Commitments......................................................
Other Losses Incurred.........................................................................................
Minority Interests and Stock Purchase Warrants..............................................
Examples Do Not Govern Practice....................................................................

CON32

63 64
64
65 66
66
67 73
69 71
72 73
74 89
75 78
79 80
81 82
83
84 89
90 95

78 79
79
80 81
81
82 89
84 86
87 89
134152
135138
139140
141142
143
144152
153163

96180
96102
103123
104114
110114
115121
118119
120121
122123
124143
125130
130
131137
138143
144146
145
146

164255
164170
171191
172182
178182
183189
186187
188189
190191
192211
193198
198
199205
206211
212214
213
214

147152
151152
153180
156158
159162
163165
166168
169173
174176
177178
179
180

215220
219220
229255
232234
235239
240242
243245
246250
251253
deleted
254
255