Professional Documents
Culture Documents
Main improvements
Filled in the gaps, for example, Updated, for example, the Clarified, for example, the roles
concepts on measurement and definitions of an asset and a of stewardship and prudence in
presentation and disclosure, liability and recognition criteria financial reporting
including guidance on the use
of profit or loss and OCI
Status and purpose of the Conceptual Framework 5
Assess the prospects for future net cash Assess management’s stewardship of
inflows the entity’s resources
Cost constraint
Clarifying aspects of faithful representation 9
Asset Liability
Transfer of an economic
As a result of past events
resource
Cost constraint
Example 1
Purchase option 14
Criterion Met?
Right
Potential to produce economic benefits
Controlled by the entity
As a result of past events
Does the entity have an asset?
Example 2
Production process 16
Criterion Met?
Right
Potential to produce economic benefits
Controlled by the entity
As a result of past events
Does the entity have an asset?
Decide at Standards level if the asset is recognised
Example 3
Long service leave 18
Criterion Met?
Criterion Met?
Criterion Met?
Criterion Met?
Measurement inconsistency
Characteristics of the asset or liability
(‘accounting mismatch’)
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