priyanka
27-11-07, 10:03 AM
Meaning of recognition in financial statement
Recognition is the process of incorporating in the balance sheet or income statement, an item that:
Meets the definition of an element
Satisfies the criteria for recognition of an asset, liability, equity, income and expenses
Bases of measurement
Historical cost
Fair value / current cost
Net realizable value
Present value of future cash flows
Recognition is the process of incorporating in the balance sheet or income statement, an item that:
Meets the definition of an element
Satisfies the criteria for recognition of an asset, liability, equity, income and expenses
Bases of measurement
Historical cost
Fair value / current cost
Net realizable value
Present value of future cash flows