Question The recognition criteria in the 2010 Conceptual Framework stated that a flow of economic benefits must be probable before an element can be recognised in the financial statements. However, IFRS and IAS Standards were criticized for applying this probability criterion inconsistently. The 2018 Conceptual Framework addressed these concerns.

Required: Explain how the probability criterion has been inconsistently applied across accounting standards. Illustrate your answer with reference to the measurement of assets held for sale, provisions, and contingent consideration transferred in a business combination. Your answer should discuss the Boards revised recognition criteria in the 2018 Conceptual Framework.