Answer:
If it satisfies the definition of an element and is also measurable with a high degree of reliability and accuracy
If there is a lack of clarity of any items found within the financial statement
Explanation:
According to the governing body the Governmental Accounting Standards Board, an item is only accepted in the face of a financial statement if it satisfies the characteristics of an element and must be measurable. The level of accuracy and reliability in these measures must also be high.
When there is any item found in the financial statement that lacks clarity, it is important to tag the statement with a note disclosure stating what is not clear to you. If this is done, the user is able to understand each items in the statement.
