Homework questions for Tutorial chapter 01 Comprehension questions 12. Discuss the essential characteristics of an asset as described in the...

One year later, the price of this aeroplane model has risen by 5%, but the airline had locked in a fixed, lower price. Under the Conceptual Framework, do you think the airline should recognise any asset (and gain) at the time when the price of the aeroplane rises? If the price fell by 5%, instead of rising, do you think the airline should recognise a liability (and loss) under the Conceptual Framework?