ok here is a good one. I don’t think it is hard but it makes the point clear: Which of the following criteria need to be satisfied in order for an item to be recognised in the financial statements? i. It meets the definition of an element of the financial statements ii. It is probable the future economic benefits will flow to or from the entreprise iii. It is certain the furture economic benefits will flow to or from the entreprise iv. The item has a cost or value v. The item has a cost or value that can be reliably measured A: i, ii and v B: i,iii and v C: i,ii and iv D: i,iii and iv I’ll be back this evening to give the answer
I’d say B.
I will go with A.
i will go with A as well
another vote for (A)
I’d go with B as well. Point (i) is a given and (iii) and (v) are spot on
A
What’s the answer to this? I was sure that the economic benefit would flow to or from the enterprise would have to be certain (as opposed to only probable which would not provide an accurate picture of that enterprise to a potential investor, creditor etc). A further rationale is that if economic benefits are only probable and then the accruals concept is brought into the mix (i.e. no cash may have actually changed hands or not), how can we actual say for certain what a company is worth?
i’ll go with A because i remember it saying the cost can be RELIABLY measured
I would think “A”…
AAAAAAAAAAaayyy is my vote, RELIABLY measured and PROBABLE benefit, works for me.
tvPM Wrote: ------------------------------------------------------- > AAAAAAAAAAaayyy is my vote, RELIABLY measured and > PROBABLE benefit, works for me. yep u got it correct answer is A PROBABLE econ benefit + RELIABLY measured are the keys nice and easy question but still need accuracy 
JTmarlin, I got tricked too but if u think about it you’ll see it makes sense of having only probable econ benefit. Anyway answer is on p112 on the FSA book
Thanks for the question and answer D’Artagnan, I suppose its better to be wrong now than on June 7th!