Changes in the Framework
• deletion of ‘expected flow’—it does not need to be certain, or even likely, that
economic benefits will arise
• a low probability of economic benefits might affect recognition decisions and
the measurement of the asset
Above 2 sentences are very confusing as removal of expected flow in definition of asset means economic benefits need not to be certain but the next sentence said that low probable of economic benefits would affect recognition. Thus, should an asset be recognized with low probability?
Ask the Tutor ACCA SBR
Recognition of Asset
6y ago#1New Framework says YES. So, even if there's only 1% chance.
But IFRS say NO. Only exception I can think of is when we calculate goodwill and must measure everything at fair value.
Mercifully, IFRS overrule the Framework. But who knows what may happen if they change the standards?
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