Elements of the Income Statement Gains Increases in equity(net assets)from peripheral or incidental transactions. Losses -Decreases in equity (net assets)from peripheral or incidental transactions. Gains and losses can result from 0 sale of investments or plant assets, settlement of liabilities, write-offs of assets. Chapter 4-9 LO 1 Understand the uses and limitations of an income statement.Chapter 4-9 Gains Losses