Intermediate Accounting 4 The Income Statement and Income Recognition Elements of the income statement Losses Losses are decreases in a companys equity(net assets) from peripheral or incidental transactions of the company and from all other events and circumstances affecting the company during a period except those that result from expenses or distributions to ownersElements of the Income Statement — Losses Losses are decreases in a company’s equity (net assets) from peripheral or incidental transactions of the company and from all other events and circumstances affecting the company during a period except those that result from expenses or distributions to owners. Intermediate Accounting 4 The Income Statement and Income Recognition