Conceptual Framework

Chapter 2 Problem 2.3

Samantha considers that all expenditures for her company, Smart Talent Corporation, can generate future benefits to her company. She is not convinced why the expenditures cannot be recognised as an asset in accordance with the Conceptual Framework.

Discuss with Samantha and clarify the requirements of recognition in the Framework.

Discussion Question

There are persons alleging that accounting standards or financial reporting standards, in particular IFRSs, are designed only for profit-making entities to prepare their financial statements. Concerns have been raised that the public sectors or non-profit making entities are neglected.

Explain the validity of the challenges and concerns and suggest ways to accommodate them.