Derecognised definitions
| Word backwards | desingocered |
|---|---|
| Part of speech | The part of speech of the word "derecognised" is a verb. |
| Syllabic division | de-rec-og-nised |
| Plural | The plural of the word "derecognised" is derecognised. The word does not change form in its plural form. |
| Total letters | 12 |
| Vogais (3) | e,o,i |
| Consonants (6) | d,r,c,g,n,s |
Derecognised: Understanding the Concept
What does it mean to be "derecognised"?
In the world of finance and accounting, the term "derecognised" refers to the removal of a previously recognized asset, liability, or financial transaction from an entity's financial statements. This can happen for a variety of reasons, such as the asset no longer meeting the criteria for recognition, the liability being settled, or the financial transaction being reversed.
Reasons for derecognition
There are several reasons why an asset, liability, or financial transaction may be derecognised. One common reason is if the asset no longer meets the criteria for recognition, such as if its economic benefits are no longer expected to flow to the entity. Similarly, a liability may be derecognised if it has been settled, extinguished, or expired. Financial transactions may also be derecognised if they are reversed, cancelled, or otherwise invalidated.
Implications of derecognition
Derecognition can have significant implications for an entity's financial statements. It can impact the entity's reported assets, liabilities, revenues, expenses, and overall financial position. For this reason, it is crucial for entities to carefully consider the criteria for derecognition and ensure that it is done in accordance with applicable accounting standards and regulations.
Challenges in derecognition
One of the key challenges in derecognition is determining when an asset, liability, or financial transaction should be removed from the financial statements. This requires a thorough understanding of the accounting standards and regulations governing derecognition, as well as judgment and careful consideration of the specific circumstances of the entity.
Conclusion
In conclusion, derecognition is an important concept in finance and accounting that involves the removal of a previously recognized asset, liability, or financial transaction from an entity's financial statements. Understanding the reasons for derecognition, the implications of derecognition, and the challenges involved is crucial for financial professionals and entities alike to ensure accurate and transparent financial reporting.
Derecognised Examples
- The company derecognised the union after failed negotiations.
- She felt derecognised by her colleagues when they ignored her ideas.
- The government derecognised the political party for failing to meet registration requirements.
- The school derecognised the student organization due to violations of the student code of conduct.
- The athlete was derecognised by the sports federation for using performance-enhancing drugs.
- The court derecognised the contract as invalid due to lack of signatures.
- The accrediting body derecognised the university for not meeting academic standards.
- The international organization can derecognise a country's sovereignty under certain circumstances.
- The board of directors derecognised the CEO's authority in making financial decisions.
- The union decided to derecognise the rogue members who were causing disruptions.