In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:
A) an decrease in future economic benefits relating to an decrease in an asset or an increase in a liability can be measured reliably.
B) an increase in future economic benefits relating to an increase in an asset or a decrease in a liability can be measured reliably.
C) an increase in future economic benefits relating to an increase in an asset can be measured reliably.
D) an increase in future economic benefits relating to an decrease in an asset or a increase in a liability can be measured reliably.

Question

Quizplus · Accepted Answer

Income is recognised when there is an increase in future economic benefits, which can occur through an increase in assets or a decrease in liabilities. This increase must be measurable reliably in order to be recognised as income. Option B accurately reflects this criteria.

In Accordance with the Conceptual Framework, Income Is Recognised in the Statement