What does derecognition mean on the CPA exam?
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Derecognition. Taking an asset or liability off the books, because it has been sold, settled, transferred or has expired. The mirror of recognition.
Defined against ASC 860-10-40.
Related terms
- deferred tax liability: The deferred tax consequences of taxable temporary differences: income already in the books that the return has not taxed yet, or a deduction taken on the return ahead of the books.