Under the IASB Framework, an asset is recognised when it is probable that the future economic benefits

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Under the IASB Framework, an asset is recognised ‘when it is probable that the future economic benefits will flow to the entity’.

(a) Which future economic benefits does that principle refer to? Illustrate your answer with examples.

(b) How would you interpret ‘probable’ in this context?

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Advanced Financial Accounting An International Approach

ISBN: 9780273712749

1st Edition

Authors: Jagdish Kothari, Elisabetta Barone

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Question Posted: Jan 28, 2024 12:02 AM

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Under the IASB Framework, an asset is recognised when it is probable that the future economic benefits

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a The phrase future economic benefits refers to the potential capacity of an asset to directly or in...View the full answer

Advanced Financial Accounting An International Approach

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