An asset should be recognised in the financial statements when:
(i)an exchange has occurred
(ii)it possesses a cost or other value that can be measured reliably
(iii)it is probable that the future economic benefits embodied in the asset will eventuate.
A) (i)and (ii)only
B) (i)and (iii)only
C) (ii)and (iii)only
D) (i),(ii)and (iii).

Question

An asset should be recognised in the financial statements when: 
(i)an exchange has occurred
(ii)it possesses a cost or other value that can be measured reliably
(iii)it is probable that the future economic benefits embodied in the asset will eventuate.
A) (i)and (ii)only
B) (i)and (iii)only
C) (ii)and (iii)only
D) (i),(ii)and (iii).

Quizplus · Accepted Answer

An asset is recognized when it can be measured reliably and it is probable that future economic benefits will flow to the entity. An exchange is not a necessary condition for recognition.

An Asset Should Be Recognised in the Financial Statements When