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What other factors need to be ascertained (aside from description and measurement) to ensure that recognition of asset or liability conforms to the faithful representation requirement?

a) Comparison to competitors' financial statements
b) Relevance and objectivity
c) Control over the asset/liability
d) Recognition criteria are sufficient

User Adrian B
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Final answer:

To ensure an asset or liability conforms to faithful representation, relevance and objectivity should be ascertained, control over the asset/liability should be confirmed, and recognition criteria should be checked for sufficiency.

Step-by-step explanation:

In order for the recognition of an asset or liability to conform to the faithful representation requirement, aside from description and measurement, it is crucial to establish the relevance and objectivity of the information, as well as determining whether there is control over the asset/liability. Specifically, this means considering if the asset or liability is capable of making a difference in the decisions made by users, and if it is free from bias. Furthermore, it is important to affirm that the recognition criteria are sufficient, ensuring adherence to the applicable accounting frameworks and standards which aim to provide an accurate depiction of the entity's financial health on the balance sheet.

User Niksvp
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