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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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