What are these two fundamental characteristics

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Question - On 1 April 2022, Joy Ltd purchased a building on credit for $25 million, and had possession of the building on the same day. Full payment for the building is due by 30 April 2022.

Joy Ltd believes that it will use the building for another six years. After that time, the building will be disposed.

Required -

1. Given the scenario, justify using the AASB Framework, whether any of the definition of assets, liabilities, equity, income or expenses is met for Joy Ltd as at 1 April 2022. Provide the reason(s) for your view with reference to the definition criteria for the elements of the financial statements.

2. Assuming the above transaction is material and Joy Ltd decides to disclose the purchase of the building in its financial statements in line with the fundamental qualitative characteristics identified in the AASB Conceptual Framework for financial reporting. What are these two fundamental characteristics?

Reference no: EM133122731

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