- December 31, 2019 at 2:07 am
My textbook says that recognition criterion for assets is relevance and faithful representation in chapter 1. In chapter 3, it says that recognition criterion for tangible non-current assets is future economic benefits and reliable cost measurement. Kindly clarify this confusion. I study a latest approved ACCA textbook.December 31, 2019 at 11:38 am
If you want to ask a question to the Tutor then you will have to post your question in Ask Tutor Forum. Because this forum is for students.
Now coming to your question…
Well, that’s one out of the some reasons that I dont prefer studying from textbook, it just has too much info which can create confusion if the info is not structured properly.
All that said,
Both are basically coming from the Conceptual Framework.
The first one, is the qualitative characteristics of the “information presented”
So the information presented of an asset should be relevant and should have faithful representation.
The second one is the recognition criteria for recording an item. In order to record the item, let’s say an asset, the asset should bring future economic benefits and the cost to be measured reliably.
Hope that clears it.January 13, 2020 at 4:19 pm
the first one is in regards to general assets, how do you know that an item is an assets, the second is regarding non current assets IAS16 recognition criteria
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