Asset recognition criteria require control and probable economic benefits; liabilities require present obligations and potential resource transfer.

Asset recognition requires control of a present economic resource from past events with potential future economic benefits. Liability recognition requires a present obligation arising from past events that may necessitate transfer of economic resources. Equity is residual interest after liabilities are deducted from assets. Income increases economic benefits (excluding owner contributions) and expenses decrease benefits and should be matched to related income.

---

---

---