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matching of costs with revenues

A process in which expenses are recognised in the income statement of comprehensive income on the basis of a direct association between the costs incurred and the earning of specific items of income. This process involves the simultaneous or combined recognition of revenues and expenses that result directly and jointly from the same transactions or other events. However, the application of the matching concept does not allow the recognition of items in the balance sheet of financial position which do not meet the definition of assets or liabilities.

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