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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 986 |
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Many lenders do not include these reports for making decisions because of the many underlining limitations for accuracy in the reports.
PART B
A stock broking firm does not include a new computer system worth $12,000 as an expense on the income statement as it fails to satisfy the recognition criteria of the AASB Framework of a decrease in future economic benefit...
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Therefore the new computer system is recognized as an asset as it satisfies both definition and recognition criteria of the AASB Framework.
As stated in the AASB Framework an expense is defined as “decreases in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrence of liabilities that result in decreases in equity other than those relating to distributions to equity participants...
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