New FAQ on: “How should items collected by an entity be classified in its financial statements?”

If the asset recognition criteria are met, an asset is classified based on the reason for holding the asset. Reference can be made to the asset classification decision tree for guidance.

Prior to completing the evaluation of an asset, some entities recognise these items at R1 values in their financial statements. Recognising assets at R1 does not provide useful information to users to inform accountability and decision-making. If a reliable value cannot be determined, the item should not be recognised as the recognition criteria are not met.

Access FAQ 7.9 here: FAQs.