According to the Conceptual Framework, recognition of an asset occurs if it is probable that future economic benefits will flow to the entity and:
A) it has a value that can be measured with reliability.
B) it is a non-current asset.
C) it has a value that can be measured with certainty.
D) it is a current asset.

Question

Quizplus · Accepted Answer

According to the Conceptual Framework, recognition of an asset occurs if it is probable that future economic benefits will flow to the entity and it has a value that can be measured with reliability. The option B, D is incorrect as it does not mention the measurement criteria whereas the option C is incorrect as no asset can be measured with certainty. Hence, the correct option is A.

According to the Conceptual Framework, Recognition of an Asset Occurs