Under the Framework,assets should be recognised in the balance sheet when:
A) future economic benefits can probably be measured reliably
B) future economic benefits are relevant, reliable and material
C) future economic benefits are probable and cost or value can be measured reliably
D) future economic benefits are relevant and can be measured reliably

Question

Quizplus · Accepted Answer

According to the Framework, assets should be recognized in the balance sheet when future economic benefits are probable and cost or value can be measured reliably. Option A and D are partially correct but do not include the probability factor. Option B mentions relevancy and materiality, but not the probability and measurement reliability aspects.

Under the Framework,assets Should Be Recognised in the Balance Sheet