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    Recognition

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    HappyPurple
    Recognition is defined as capturing financial statement elements that meet the definition of an asset, liability, equity, income, or expense. Recognition is linked to changes in financial performance statements, as the recognition of increased income also recognizes increased assets or decreased liabilities. Derecognition means removing an asset or liability from the statement of financial position when it no longer meets the definition, such as when an entity loses control of an asset. Measurement quantifies recognized elements with monetary values by selecting a measurement basis. The Framework discusses the basic measurement bases of historical cost, using the initial acquisition cost, and current value, using the subsequent or final value.

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    Recognition

    Uploaded by

    HappyPurple
    18 views1 page
    Recognition is defined as capturing financial statement elements that meet the definition of an asset, liability, equity, income, or expense. Recognition is linked to changes in financial performance statements, as the recognition of increased income also recognizes increased assets or decreased liabilities. Derecognition means removing an asset or liability from the statement of financial position when it no longer meets the definition, such as when an entity loses control of an asset. Measurement quantifies recognized elements with monetary values by selecting a measurement basis. The Framework discusses the basic measurement bases of historical cost, using the initial acquisition cost, and current value, using the subsequent or final value.

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    Recognition is defined as capturing financial statement elements that meet the definition of an asset, liability, equity, income, or expense. Recognition is linked to changes in financial performance statements, as the recognition of increased income also recognizes increased assets or decreased liabilities. Derecognition means removing an asset or liability from the statement of financial position when it no longer meets the definition, such as when an entity loses control of an asset. Measurement quantifies recognized elements with monetary values by selecting a measurement basis. The Framework discusses the basic measurement bases of historical cost, using the initial acquisition cost, and current value, using the subsequent or final value.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    18 views1 page

    Recognition

    Uploaded by

    HappyPurple
    Recognition is defined as capturing financial statement elements that meet the definition of an asset, liability, equity, income, or expense. Recognition is linked to changes in financial performance statements, as the recognition of increased income also recognizes increased assets or decreased liabilities. Derecognition means removing an asset or liability from the statement of financial position when it no longer meets the definition, such as when an entity loses control of an asset. Measurement quantifies recognized elements with monetary values by selecting a measurement basis. The Framework discusses the basic measurement bases of historical cost, using the initial acquisition cost, and current value, using the subsequent or final value.

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    Recognition is defined as capturing items in the financial statements that

    meet the definition of an asset, liabilities, equity, income or expense and


    including an element in its respective financial statements which provides
    useful information to the users. It is linked to elements of statements of
    financial performance and financial information because for example, when
    the entity recognizes an increase in income,there is also recognition of
    increase in assets or decrease in liability, same as in recognition if
    expense there is also recognition if decrease in asset or increase in liability.
    Derecognition on the other hand, means the removal of an asset or liability
    from the statement of financial position in which it normally happens when
    the item no longer meets the definition of an asset or a liability. For example
    derecognition of assets occurs when the entity loses control of all or part of
    assets and derecognition of a liability when the entity no longer presents an
    obligation in all or part of the liability. Moreover, Measurement is quantifying
    the elements in monetary terms and giving value to the elements or
    selecting a measurement basis on it. This means in what amount the entity
    should recognize the asset, liability, piece of equity, income or expense in
    the entity's financial statements. With these , the Framework discusses two
    basic measurement bases which are historical cost or the initial value or
    original acquisition cost and current value which is the subsequent or the
    final value of the elements. Also, Historical Cost is measurement based
    on the transaction price at the time of the acquisition of the assets and
    carrying amount is the measure of element updated to reflect the conditions
    at the measurement date, in which it includes fair value, value in use and
    current cost.

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