The accounting equation is the basic structure of the financial statements. It is like other equations having two sides of equal values. The similarity stops there. The statement of equality is an expression of a concept that establishes a foundation for the accounting process that begins with a transaction and ends in financial statements. The statement of financial condition is in fact an expanded accounting equation. The evolution of the accounting starts early, even at the enterprise planning stage. It is not based on any other mathematical model but is a succinct summary of the resources available to the enterprise, and the claims to these resources. These values will change with every transaction, but the equation is always kept in balance.