UNIT 2 · LESSON 3
Applying the recognition criteria
Learn how to decide when an item should be recognised in the financial statements.
Recognition begins with the transaction
Before an item is recognised, the entity considers the rights and obligations created by the transaction. The accounting follows the substance and requirements of the relevant reporting framework.
KEY IDEA
Recognition determines whether an item is included in the financial statements. Measurement determines the amount at which it is recorded.
Watch and consider
Watch the short explanation. At the checkpoint, consider which condition supports recognition.
VIDEO LESSON · 06:42
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Understanding recognition
Course video
Course video
✦Knowledge checkCheckpoint at 02:18
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02:05 / 06:42⛶
VIDEO CHECKPOINT · 02:18
Check your understanding
The video pauses here until you answer this question.