In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:*1 pointa present obligation of the entity arising from past events, the settlement of which is expected to result in an inflow to the entity of resources embodying economic benefits.a possible obligation of the entity expected to arise from future events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.possible obligation of the entity, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
Question
In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:*1 pointa present obligation of the entity arising from past events, the settlement of which is expected to result in an inflow to the entity of resources embodying economic benefits.a possible obligation of the entity expected to arise from future events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.possible obligation of the entity, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.
Solution
The question seems to be asking about the conditions under which income is recognized according to the conceptual framework. However, the options provided seem to be more related to the recognition of liabilities rather than income.
In the context of the conceptual framework, income is typically recognized when an increase in future economic benefits related to an increase in an asset or a decrease of a liability has arisen that can be measured reliably. This usually happens when goods are sold, services are rendered, or other operations of the entity that constitute its ongoing major or central operations.
None of the options provided seem to fit this description. They all describe situations where an obligation (a liability) is expected to result in either an inflow or outflow of resources, which is not the same as recognizing income.
Therefore, it seems there might be a mistake in the question or the provided options.
Similar Questions
In accordance with the conceptual framework, income is recognised in the statement of profit or loss and other comprehensive income when:*1 pointan increase in future economic benefits relating to a decrease in an asset or an increase in a liability can be measured reliably.an increase in future economic benefits relating to an increase in an asset can be measured reliably.an increase in future economic benefits relating to an increase in an asset or a decrease in a liability can be measured reliably.a decrease in future economic benefits relating to a decrease in an asset or an increase in a liability can be measured reliably.
"A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits" is a definition of:Group of answer choicesexpenses.equity.income.liabilities.
"A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits" is the definition of:an expensea liabilityequityan asset
a. Probable outflow of economic benefits d. Present obligation as a result of past events b. Transfer of an economic resource c. Obligation
The two categories of income, as specified in the Conceptual Framework, are:
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