PROBLEM 2: TRUE OR FALSE 1. The Conceptual Framework may be revised from time to time. Revisions in the Conceptual Framework automatically result to changes in the Standards. 2. According to the revised Conceptual Framework, the asset is the right, while the liability is the obligation, rather than 4. According to the revised Conceptual Framework, an asset can ultimate inflows or outflows of economic benefits from the asset or liability. 3. Legal enforceability of a right, for example ownership, necessary for control over an economic resource to exist. resulting exist even if the probability that it will provide inflows future economic benefits is low, and even if the asset is subjec to a high measurement uncertainty. 5. According to the revised Conceptual Framework, what the entity controls is the right, and not the ultimate inflows of future economic benefits that the economic resource may produce. 6. The Conceptual Framework defines income and expenses in terms of changes in assets and liabilities. 7. Not all items that meet the definition of a financial statement element are recognized; they are recognized only if recognizing them will also result in relevant and faithfully represented information. 8. Measuring an asset at historical cost will always result in the same carrying amount of the asset from period to period. 9. According to the Conceptual Framework, amortized cost measurement relates to historical cost, rather than current value. 10. Although the use of a single measurement basis improves the understandability of the financial statements, this may always lead to useful information. Thus, the Standards require different measurement bases for different assets, liabilities, income and expenses. not