To be recognised in a statement of profit and loss and other comprehensive income,an item must by nature be:
A)either income,an expense or item of other comprehensive income.
B)both income and a liability.
C)either an asset or a liability.
D)both a liability and a direct adjustment to equity.

Question

Quizplus · Accepted Answer

Items that are recognised in a statement of profit and loss and other comprehensive income are either income, expenses or items of other comprehensive income. Therefore, option A is the correct answer. Option B is incorrect because an item cannot be both income and a liability. Option C is incorrect because an item that is recognised in a statement of profit and loss and other comprehensive income is not always an asset or a liability. Option D is incorrect because an item cannot be both a liability and a direct adjustment to equity.

To Be Recognised in a Statement of Profit and Loss