Under AASB 139,an entity is required to recognise a financial asset or liability on its statement of financial position when and only when,it becomes a party to the contractual provisions of the instrument.

Question

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AASB 139 requires an entity to recognize a financial asset or liability when it becomes a party to contractual provisions of the instrument. This means that the entity has legal rights and obligations related to the instrument, and it is probable that future economic benefits or costs related to the instrument will flow to or from the entity.

Under AASB 139,an Entity Is Required to Recognise a Financial