Český finanční a účetní časopis 2014(3):34-45 | DOI: 10.18267/j.cfuc.407

Elements of Financial Statement of Public Sector Entities Definition

Vladimír Zelenka
Doc. Ing. Vladimír Zelenka, Ph.D. - docent; Katedra finančního účetnictví a auditingu, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <vzelenka@vse.cz>.

Financial statements display the financial effects of transactions and other events by aggregating them into groups which have common characteristics. These broad groups are called the elements (building blocks) of financial statements. These elements are a base for recording, classifying and grouping financial data. Financial statements structured by these elements provide users with relevant information. Determination of these building blocks and their definitions for general purpose financial reporting by public sector entities are characterized by some particularities. Whereas definitions of assets, liabilities, revenues and expenses for public sector financial reporting are simile to these for business financial reporting, there are some important differences between both sectors. The most important peculiarities of determination of the elements of financial statements of public sector entities are: capacity of asset in the form of service potential and economic benefit, and need for reporting of deferred inflows and deferred outflows in the financial statements.

Keywords: Conceptual Framework; Elements of Financial Statements; Assets; Liabilities; Deferred Inflows; Deferred Outflows; IPSAS.
JEL classification: M41

Published: October 1, 2014  Show citation

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Zelenka, V. (2014). Elements of Financial Statement of Public Sector Entities Definition. Czech Financial and Accounting Journal, 2014(3), 34-45. doi: 10.18267/j.cfuc.407
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