or other using up of assets of an entity or incurrences of its liabilities (or a combination of both) from delivering or producing goods, rendering services, or carrying out other activities (CF E81). Gain accounts are used to recognize gains. Gains are increases in equity (net assets) from transactions and other events and circumstances affecting an entity except those that result from revenues or investments by owners (CF E82). In practice, changes in the market value of assets (positive) or liabilities (negative) are recognized as gains while, for example, interest, dividends, rent or royalties received are recognized as other revenue. Loss accounts are used to recognize losses. Losses are decreases in equity (net assets) from transactions and other events and circumstances affecting an entity except those that result from expenses or distributions to owners (CF E83). In practice, changes in the market value of assets (negative) or liabilities (positive) are recognized as losses while, for example, interest or charitable contributions are recognized as other expenses. Income is the term generally used when referring to revenue and gains together. A separate term for the aggregation of expenses and losses does not exist. Contra-accounts are accounts with negative balances that offset other balance sheet accounts. Examples are accumulated depreciation (offset against fixed assets), and the allowance for bad debts (offset against accounts receivable). Deferred interest is also offset against receivables rather than being classified as a liability. Contra accounts are also often referred to as adjustments or adjusting accounts. Example Chart of Accounts Sample Chart of Accounts A chart of accounts compatible with IFRS and US GAAP includes balance sheet (assets, liabilities and equity) and the profit and loss (revenue, expenses, gains and losses) classifications. If used by a consolidated or combined entity, it also includes separate classifications for intercompany transactions and balances. Account Number -- Account Title -- Balance: Debit (Dr) / Credit (Cr) 1.0.0 Assets (Dr) 1.1.0 Cash And Financial Assets (Dr) 1.1.1 Cash and Cash Equivalents (Dr) 1.1.2 Financial Assets (Investments) (Dr) 1.1.3 Restricted Cash and Financial Assets (Dr) 1.1.4 Additional Financial Assets and Investments (Dr) 1.2.0 Receivables And Contracts (Dr) 1.2.1 Accounts, Notes And Loans Receivable (Dr) 1.2.2 Contracts (Dr) 1.2.3 Nontrade And Other Receivables (Dr) 1.3.0 Inventory (Dr) 1.3.1 Merchandise (Dr) 1.3.2 Raw Material, Parts And Supplies (Dr) 1.3.3 Work In Process (Dr) 1.3.4 Finished Goods (Dr) 1.3.5 Other Inventory (Dr) 1.4.0 Accruals And Additional Assets (Dr)