Financial Reporting and Analysis Q58

58Under the IFRS Framework for the Preparation and Presentation of Financial Statements, to be recognized as a financial statement element, an element most likely needs to:

A
have a cost or value that can be measured with reliability.
B
normally be carried at historical cost, current cost or fair market value.
C
provide certainty that any future economic benefit associated with the item will flow to or from the enterprise.

Option : A
Explanation : For recognition in the financial statements, an element must have a cost or value that can be measured with reliability; certainty is not a requirement for economic benefits associated with an item to flow to or from the enterprise: all that is required is that it is probable that they will.

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