Which of these criteria specified in the Conceptual Framework must be met before a liability can be recognised in the accounting records?
i. It is probable that the future sacrifices associated with the item will occur.
ii. The liability is beyond a reasonable doubt.
iii. The liability has a cost or value that can be measured with reliability.
A) i, ii, iii
B) i, iii
C) ii, iii
D) i, ii

Question

Quizplus · Accepted Answer

According to the Conceptual Framework, a liability should be recognized in the accounting records if it meets the following criteria:
i. It is probable that the future sacrifices associated with the item will occur.
ii. The liability has a cost or value that can be measured with reliability.
Therefore, option B is the correct answer. Option A is incorrect because "beyond a reasonable doubt" is not a requirement for recognizing a liability. Option C is incorrect because only "probable" is required, not "beyond a reasonable doubt." Option D is incorrect because "probable" and "beyond a reasonable doubt" are not both required for recognizing a liability.

Which of These Criteria Specified in the Conceptual Framework Must