What does derecognition mean on the CPA exam?
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.
Which CPA exam sections use derecognition?
Derecognition appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
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.