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Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
In general, a company recognizes expenses in the period that it [...] associated with the expenditure.
Answer
consumes the economic benefits

Or loses some past economic benefit

Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
In general, a company recognizes expenses in the period that it [...] associated with the expenditure.
Answer
?

Tags
#cfa-level-1 #expense-recognition #reading-25-understanding-income-statement
Question
In general, a company recognizes expenses in the period that it [...] associated with the expenditure.
Answer
consumes the economic benefits

Or loses some past economic benefit
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4.1. General Principles
In general, a company recognizes expenses in the period that it consumes (i.e., uses up) the economic benefits associated with the expenditure, or loses some previously recognized economic benefit.28 A general principle of expense recognition is the matching principle . Strictly speaking, IFRS do not refer to a “matching principle” but rather to a “matching concept”

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