i. Five elements of financial statements:

1. Assets:
   • Resources controlled by an entity as a result of past events, from which future economic benefits are expected to flow to the entity.
2. Liabilities:
   • Present obligations of an entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits.
3. Equity:
   • The residual interest in the assets of an entity after deducting all liabilities. It represents the ownership interest held by shareholders.
4. Income:
   • Increases in economic benefits during the accounting period, in the form of inflows or enhancements of assets, or decreases in liabilities that result in an increase in equity, excluding contributions from equity participants.
5. Expenses:
   • Decreases in economic benefits during the accounting period in the form of outflows, depletions of assets, or incurrence of liabilities that result in a decrease in equity, excluding distributions to equity participants.

ii. Four models of measurement of elements of financial statements:

1. Historical Cost:
   • Assets are recorded at the amount paid at the time of acquisition. Liabilities are recorded at the amount received in exchange for the obligation.
2. Current Cost:
   • Assets are carried at the amount that would be paid to acquire them at the current market price. Liabilities are carried at the current amount that would be required to settle the obligation.
3. Realizable (Settlement) Value:
   • Assets are measured at the amount that could be obtained from selling the asset. Liabilities are measured at the amount expected to be paid to settle them.
4. Present Value:
   • The current discounted value of the future cash inflows that an asset is expected to generate, or the discounted value of the future cash outflows required to settle a liability.