Probability Density Function and Recognition: Difference between pages

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''Financial maths''.
''Financial reporting''.


Probability Density Function (PDF) refers to the density of a continuous random variable.  
Recognition is the identification and inclusion of an item in one or more of a:
:(i) balance sheet,
:(ii) income statement,
:(iii) statement of comprehensive income,
:(iv) statement of changes in equity or
:(v) cash-flow statement.


PDF is used to specify the probability of a random variable within a particular range as opposed to taking a single value.


Normal Distribution is an example of PDF.
Certain items which are not recognised and incorporated into any of these five statements may still be disclosed in the accompanying notes to the financial statements.




== See also ==
== See also ==
* [[Mean]]
*[[Accruals concept]]
* [[Normal frequency distribution]]
*[[Balance sheet]]
* [[Standard deviation]]
*[[Capitalise]]
* [[Variance]]
*[[Contingent assets]]
* [[Z statistic]]
*[[Derecognition]]
*[[Disclosure]]
* [[Environmental profit and loss]]
*[[Expense]]
* [[Financial reporting]]
* [[IFRS 9]]
*[[IFRS 15]]
*[[Income statement]]
*[[Notes]]
* [[Primary statements]]
*[[Profit]]
*[[Realisation]]
*[[Revenue]]
*[[Revenue recognition]]
*[[Statement of cash flows]]
*[[Statement of changes in equity]]
*[[Statement of comprehensive income]]


[[Category:Knowledge_and_information_management]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:Financial_risk_management]]
[[Category:The_business_context]]

Revision as of 17:46, 31 July 2022

Financial reporting.

Recognition is the identification and inclusion of an item in one or more of a:

(i) balance sheet,
(ii) income statement,
(iii) statement of comprehensive income,
(iv) statement of changes in equity or
(v) cash-flow statement.


Certain items which are not recognised and incorporated into any of these five statements may still be disclosed in the accompanying notes to the financial statements.


See also