Chapter 5: Recognition 6 / 10

Chapter 5: Recognition


We recognise (place in the accounts) Assets / Liabilities / Income / Expense when:

  1. it is RELEVANT to do so and in doing so

  2. the item is FAITHFULLY REPRESENTED

  3. Meet the definition of Asset / Liability / Equity, Income or Expense

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

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

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