Recognition is defined as capturing items in the financial statements that

meet the definition of an asset, liabilities, equity, income or expense and

including an element in its respective financial statements which provides
useful information to the users. It is linked to elements of statements of
financial performance and financial information because for example, when
the entity recognizes an increase in income,there is also recognition of
increase in assets or decrease in liability, same as in recognition if
expense there is also recognition if decrease in asset or increase in liability.
Derecognition on the other hand, means the removal of an asset or liability
from the statement of financial position in which it normally happens when
the item no longer meets the definition of an asset or a liability. For example
derecognition of assets occurs when the entity loses control of all or part of
assets and derecognition of a liability when the entity no longer presents an
obligation in all or part of the liability. Moreover, Measurement is quantifying
the elements in monetary terms and giving value to the elements or
selecting a measurement basis on it. This means in what amount the entity
should recognize the asset, liability, piece of equity, income or expense in
the entity's financial statements. With these , the Framework discusses two
basic measurement bases which are historical cost or the initial value or
original acquisition cost and current value which is the subsequent or the
final value of the elements. Also, Historical Cost is measurement based
on the transaction price at the time of the acquisition of the assets and
carrying amount is the measure of element updated to reflect the conditions
at the measurement date, in which it includes fair value, value in use and
current cost.