5.3 Derecognition Derecognition nor

5.3 Derecognition Derecognition normally occurs when the item no longer meets the definition of an element:For an asset-when control is lost(derecognise part of a recognised asset if control of thotpart is lost)For a liability-when there is no longer a present obligation(Conceptual Framework:para.5.26)Activity 3:RecognitionConsider the following situations:(1)Company A reports under IFRS Standards and provides a training programme for all of itsmembers of staff.(2)The directors of Company B,a publicly listed company reporting under IFRS Standards,propose a dividend at the board meeting on 28 December.The dividend is communicated tothe markets on 10 February,after the financial statements for the year ended 31 Decemberhave been prepared.RequiredDiscuss what,if anything,should be recognised in the financial statements of Company A andCompany B relating to these situations.Solution6 MeasurementThe Conceptual Framework specifically refers to two measurement bases:.Historical costCurrent valueIt outlines the information provided by both but stresses that the choice between them dependson what information the primary users of the financial statements require.