'Recognised' in relation to asset disclosure may be defined as meaning:
A) disclosed in the notes to the accounts but not reported on, or incorporated in amounts reported on the face of the statement of financial position .
B) classified according to nature or type within liquidity categories based on the operating cycle of the reporting entity.
C) reported on, or incorporated in amounts reported on, the face of the statement of financial position .
D) familiar, of well-known usefulness.

Question

Quizplus · Accepted Answer

When an asset is recognized in relation to asset disclosure, it means that it is reported on or incorporated in the amounts reported on the face of the statement of financial position. Option A suggests that the asset has only been disclosed in the notes to the accounts, which is not enough to be considered recognized. Option B refers to the classification of assets, which is not the same as recognition. Option D is not relevant to the accounting definition of recognition.

'Recognised' in Relation to Asset Disclosure May Be Defined as Meaning