Recognition is the process of inincorporating in the balance sheet [statementof financial position] or income statement [statement of comprehensive income] an item that meets the definition of an element and satisfies the following criteria for recognition:
- it is probable that any future economic benefit associated with the item will flow to or from the entity; and
- the item has a cost or value that can be measured with reliability.
Recognition is specifically discussed in the IASB Framework for the Preparation and Presentation of Financial Statements.
Source: Glossary of Terms of IFRSs as at 31 December 2008.
