confusion regarding

Hmmm! Interesting question for a P7 student! :-))) Recognition involves dealing with the numerical value of the item within the financial statements Disclosure is where the numerical value is NOT incorporated within the financial statements but the matter is fully explained by way of disclosure note within the notes to the financial statements Is that better?

better than before ,thank you so much sir, but still i want through example

please give me the example of recognise and disclosure

In the area of contingencies, we would recognise a probable liability but would merely disclose a possible liability. For the probable liability (where the chance of it crystallising is greater than the chance of it not crystallising) we would Dr statement of profit or loss with the reliably measurable amount and Cr a provision account For the possible liability (where the chance of it crystallising is lower than the chance of it not crystallising) we would explain by way of disclosure note within the notes to the financial statements the circumstances that have given rise to this possible obligation Better?

thank you millions times, now fully understood

You're welcome