Recognition is the act of bringing an item that meets an element definition into the statement of financial position or of financial performance, with the statements linked through the accounting equation. An asset or liability (and any related income, expenses or changes in equity) is recognised when recognition provides users with useful information: relevant information about the element and a faithful representation of it, at a cost that does not exceed the benefits. Recognition may not provide relevant information where it is uncertain whether the asset or liability exists or where an inflow or outflow is improbable, and may fail to represent the item faithfully where measurement uncertainty is so high that no measure would be useful or where the item is hard to identify separately from other items; in such cases the item may still need explanatory disclosure.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.