CIMA F1 Syllabus B. Financial Statements - Chapter 5: Recognition - Notes 6 / 10
Chapter 5: Recognition
We recognise (place in the accounts) Assets / Liabilities / Income / Expense when:
it is RELEVANT to do so and in doing so
the item is FAITHFULLY REPRESENTED
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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Chapter 4—The Elements Of Financial Statements - Assets & Liabilities
Syllabus B. Financial Statements
B1. Financial Statements - The main elements
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Chapter 5: De-Recognition
Syllabus B. Financial Statements
B1. Financial Statements - The main elements