An entity shall recognise all items of income and expense in a period in profit or loss unless an Australian Accounting Standard requires or permits otherwise.

Question

Quizplus · Accepted Answer

This statement is in accordance with the principle of accrual accounting, which requires recognition of income and expenses in the period in which they are earned or incurred, regardless of whether cash is received or paid in that period. However, there may be circumstances where an Australian Accounting Standard permits deferral or recognition of income or expenses in a different period.

An Entity Shall Recognise All Items of Income and Expense