RECOGNITION AND DERECOGNITION
- Recognition: Process of including an item in the financial statements when it meets the definition of an element and provides relevant, faithfully represented information.
- Derecognition: Removal of all or part of a previously recognized asset or liability from the financial statements.
- An asset or liability is recognized if it is probable that future economic benefits will flow to or from the entity and the item has a cost or value that can be measured reliably