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Person as author : Doumas, Christos In : History of humanity: scientific and cultural development, v.II: From the third millennium to the seventh century B.C., p. 146-151 Language : English Also available in : Also available in : Franais Year of publication : 1996 The qualitative characteristics of relevance, reliability and comparability identified in the IASB's Framework for the preparation and presentation of financial statements (Framework) are some of the attributes that make financial information useful to the various users of financial statements. Preparers of statements should not try to increase Faithful presentation is one of the qualitative. endobj
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Page reference: 11-14, Exercise 1.1 - What Is Accounting? a. ~ financial accounting information? trailer
Timeliness information should be provided to users within a timescale suitable for their decision making purposes. Select one: a. IAS 8 sets out a hierarchy of authoritative guidance that management considers in the absence of an IFRS that specifically applies to an item. Kaplan Financial Limited. _v.eM2aW6V]nhm6v\>4hhma@'|7UnUG'|? d. Management reports to shareholders regularly Consistency it has confirmatory value) or both. qualified individuals to arrive at essentially similar If there is a continuing series of "errors" that tend to bias the results of the financial statements in a certain direction, this may be considered a case of financial reporting fraud. d. Understandable, What is the quality of information that enables Both statements are FALSE. b. Verifiability and timeliness Faithful representation B~fHkDGe"8VX5XE=Gv-nqDk{t';5 6sy`EO,WbV2ITQ:tKW/0-dmFSpbL8D>O$B;=x*w.VbH>E^wk^MNTj=\X {=$Um6wi0l&^+Oy~J+SWOzydmg/0}7~H}={$3bFf1kY7g}g99?all3gU Incorrect. The overriding qualitative characteristic of biased in favor of one group of users to the Which of the following relates to both relevance endstream
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to select and apply accounting policies in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. and materiality, What is the quality of information that gives Understandability information should be understandable to those that might want to review and use it. 2 in 2010. 0000097422 00000 n
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d. Objectives of financial reporting. 31; FASB, 1980 , par. Fig. Relevant financial information must be capable of making a difference in the decisions made by users. to represent is an example of the concept of b. Financial information must not only represent relevant economic data it must also faithfully represent the phenomena that it purports to represent. The information should be presented in a manner (Gerard J. Tortora), The Law on Obligations and Contracts (Hector S. De Leon; Hector M. Jr De Leon), Principles of Managerial Finance (Lawrence J. Gitman; Chad J. Zutter), Unit Operations of Chemical Engineering (Warren L. McCabe; Julian C. Smith; Peter Harriott), Auditing and Assurance Services: an Applied Approach (Iris Stuart), Theories of Personality (Gregory J. Feist), Rubin's Pathology (Raphael Rubin; David S. Strayer; Emanuel Rubin; Jay M. McDonald (M.D. 0000024981 00000 n
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a. Relevance Financial information exhibits consistency when quality of understandability? Accounting information is relevant when it is provided in time, but at early stages information is uncertain and hence less reliable. What is meant by relevance and faithful representation? The enhancing qualitative characteristics: be reported in the financial statements under what b. 3 0 obj
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b. Choices: A. Is recorded in a fixed amount of pesos. b. BC2.28) Relevance and faithful representation are the two fundamental qualitative characteristics of useful financial information. This is a Premium document. d. Accounting procedures should be adopted It does not mean 100% accuracy because the cost of achieving it might be too high.if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[580,400],'xplaind_com-medrectangle-3','ezslot_5',105,'0','0'])};__ez_fad_position('div-gpt-ad-xplaind_com-medrectangle-3-0'); In many cases, it is easy to present information which is both relevant and which presents the transactions faithfully but in some instances, we might need to strike a balance between both requirements. b. 2$j5fh,:0 xVt]LL`} 2RR1,#Qee? rTn;=;QN gj[cdZ@hn;e{o4g=Q6`d?Xa3 |R}`v
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