Page 19 - Finac1 Test 1 slides - 2. The Conceptual Framwork
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THE CONCEPTUAL FRAMEWORK
Elements of the financial statements
Expenses
• Definitions:
• Expenses include losses and expenses.
• Expenses arise in the ordinary activities of the entity.
• Losses may or may not arise from ordinary activities of
an entity.
• Recognition:
• When a decrease in future economic benefits related to
a decrease in an asset or increase of a liability has arisen
that can be measured reliably.
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