Page 16 - Finac1 Test 1 slides - 2. The Conceptual Framwork

THE CONCEPTUAL FRAMEWORK

Elements of the financial statements

Assets

• Definition:

• a resource controlled by the entity

• as a result of past events and

• from which future economic benefits are expected to flow

• Recognition:

• when it is probable that economic benefits will flow to the

entity and

• the cost/value can be measured reliably

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