Judgement part b Flashcards
1
Q
What are the four components of an accounting policy?
A
Definition, Recognition, Measurement and Disclosure
2
Q
Define the “Definition” component
A
What was the transaction about?
3
Q
Define the “Recognition” component
A
When should it be recognised?
4
Q
Define the “Measurement” component
A
How much? Should it be recorded at cost or current value?
5
Q
Define the “Disclosure” component
A
What else needs to be disclosed to financial statement users?
