According to the Conceptual Framework which statement concerning the recognition of liabilities is not true?
A) All liabilities that meet the definition of a liability should be recognised in the accounting records.
B) A recognition criteria is that it is probable that a sacrifice of future economic benefits will be required.
C) A recognition criteria is that the amount of the liability must be able to be measured reliably.
D) Liabilities that do not satisfy the recognition criteria can be recognised in the notes attached to the accounts.

Question

Quizplus · Accepted Answer

The Conceptual Framework does not state that all liabilities meeting the definition must be recognized in the accounting records. Recognition depends on further criteria, such as the probability of an outflow of resources and the ability to measure the liability reliably.

According to the Conceptual Framework Which Statement Concerning the Recognition