rec·og·nize vt -nized, -niz·ing
1: to acknowledge formally: as
a: to admit as being of a particular status
recognize a precedent
recognize a union; specif: to acknowledge (as a right, cause of action, or defense) as valid
b: to admit as being one entitled to be heard: give the floor to
c: to acknowledge the de facto existence or the independence of
refused to recognize the new government
2: to account for as real, received, or incurred and treat and record appropriately; specif: to account for (a gain, loss, expense, or income) on current accounting or tax records
recognized the gain when she included it as income on her tax return compare realize
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.