Asset Recognization


Please provide example of a transaction where there is recognisation dilema for asset or liability?


Four revenue recognition issues in my notes:

  • long-term contracts - installment sales - barter / round-trip transactions - gross vs net reporting (agents)

OP was asking for recognition dilemmas for assets and liabilities, not for _ revenues _.

Where have you seen a reference to problems with asset or liability recognition?

Investment in associates, operating leases, R&D, provisions, stock options, hybrid securities. These are all examples of subjective recognition. I’m not sure if this answers your question.