ACCA FR Syllabus A. The Conceptual And Regulatory Framework - Recognition and recognition criteria - Notes ^{1 / 4}

So we recognise Assets / Liabilities / Income / Expense when it is RELEVANT to do so and in doing so the item is FAITHFULLY REPRESENTED

An item may not be RELEVANT if it has a very low probability of bringing in benefits
An item may not be RELEVANT if it has a very high existence uncertainty

An item may not be FAITHFULLY REPRESENTED if it's measurement is highly uncertain

Everything is principle based. Different circumstances will need different levels of probability etc