Before an Asset Can Be Recognised,the Framework Requires That an Asset

question 9

Essay

Before an asset can be recognised,the framework requires that an asset satisfy the element that it has some future economic benefits.Discuss the ways wherein future economic benefits can be determined.

---

Definitions:

Agency

A relationship where one party (the agent) is authorized to act on behalf of another (the principal) in dealing with third parties.

Impossible

A term used to describe a task or condition that cannot realistically be fulfilled or achieved.

Agency Relationship

A legal arrangement in which one party, the agent, acts on behalf of another party, the principal, in conducting transactions with third parties.

Bind

To legally obligate oneself or another party to an agreement or contract.