ACCA FR Classroom - Syllabus A2. Recognition and Measurement ^{2 / 4}

a) Define what is meant by ‘recognition’ in financial statements and discuss the recognition criteria.

b) Apply the recognition criteria to: 
i) assets and liabilities. 
ii) income and expenses.

c) Explain and compute amounts using the following measures :
i) historical cost
ii) current cost
iii) Value in use/fulfilment value
iv) fair value

d) Discuss the advantages and disadvantages of historical cost accounting.

e) Discuss whether the use of current value accounting overcomes the problems of historical cost accounting.