Page 379 - SBR Integrated Workbook STUDENT S18-J19

Current issues

2.4 Derecognition

The existing Framework provides no guidance about derecognition. The Exposure
Draft provides guidance to ensure an entity faithfully represents the assets or
liabilities retained after the transaction

2.5 Presentation

The revised Framework proposes a rebuttable assumption: that all incomes and
expenses are recorded in profit or loss. This can be rebutted if:

 the entity holds assets or liabilities at current value and components of the value
change would not arise if the asset or liability was held at historical cost, and

 excluding the item from profit or loss enhances the relevance of financial
information.

The Exposure Draft also proposes that incomes and expenses included in other
comprehensive income will be recycled to profit or loss in the future.

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