Under IFRS and ASPE One of the Formal Principles Which

question 71

Multiple Choice

Under IFRS and ASPE one of the formal principles which set out the criteria that must be satisfied before an expense can be recognized is:

• A) There has been a decrease in future economic benefits caused by a decrease in an asset or an increase in a liability.
• B) The expense cannot be reliably measured.
• C) There has been an increase in future economic benefits caused by a decrease in an asset or an increase in a liability.
• D) The ownership (or control) and benefits of the goods have been transferred to the customer, or the services have been provided to the customer.

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Definitions:

Home Country

Refers to the country where a company's headquarters are located and from which it operates most directly.

Host Country

The nation that hosts foreign investors, businesses, or workers.

Elasticity

A measure of how much the quantity demanded of a good or service changes in response to a change in its price or other factors, such as consumers' income.

Labor Demand

The total amount of workers that employers are willing and able to hire at a given wage rate in a particular market or industry.