Economic event

Economic event is any event that affects the financial position of a company, resulting in changes in the company's assets, liabilities or equity. Economic events can be both external and internal. They are the basis for all accounting entries, as every economic event should be recorded in the company's accounts. Examples of economic events include the receipt of a loan, a shareholder transaction, a change in the market value of an investment, the purchase of raw materials, and the sale of services.