IFRS Framework: Recognition Criteria
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Questions and Answers

What is the condition for an item to be recognized according to the recognition criteria?

  • It has a probable future economic benefit to the entity.
  • It has a cost or value that can be measured with reliability and has a probable future economic benefit to the entity. (correct)
  • It has a probable future economic benefit to the entity only.
  • It has a cost or value that can be measured with reliability only.

    • What does the term 'reliability' refer to in the context of financial information?

  • The completeness of the information.
  • The information being complete, neutral, and free from error. (correct)
  • The accuracy of the information.
  • The information being relevant to the user.

    • What is the purpose of verifiability according to the Framework?

  • To ensure the accuracy of the information.
  • To ensure the relevance of the information.
  • To ensure the completeness of the information.
  • To help assure users that information faithfully represents the economic phenomena it purports to represent. (correct)

    • What is the primary characteristic of reliable information?

    <p>It is complete, neutral, and free from error.</p> Signup and view all the answers

    What is the new requirement for information stated in the Framework (para. QC12)?

    <p>The information must faithfully represent the phenomena it purports to represent.</p> Signup and view all the answers

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