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FAQualitative characteristics of financial statements

Mmansoor11y ago
here are 2 questions and answers that i dont undertstand: 1. "The IASB Framework....gives 5 qualitative characteristics which make financial information reliabel. what are these 5 characteristics?" answer: faithful rep, neutrality, substance over form, completeness,neutrality, prudence" my answer: fiathful rep, neutrality, subs over form, completeness, consistency question 2: "which on of the following is NOT a qualitative characteristic of financial information according to the Framework for the...." a. prudence b. consistency c. completeness d accrual correct answer: d ------------------------- my text lists 7 characteristics: fundamental: relevance, true and fair enhancements: verifiability, comparability, understandability, timeliness ------------------------- after doing these 2 questions, i am rather confused
John MoffatJohn MoffatTutor11y ago#1
The framework was changed in 2010 and I think your book is referring to the previous one. You might find this helpful: https://www.kpmg.com/CN/en/IssuesAndInsights/ArticlesPublications/Newsletters/IFRS-Briefing-Sheet/Documents/IFRS-Briefing-Sheet-O-1010-213.pdf Accruals is not a qualitative characteristic (qualitative is where it is not measured in numbers)
Mmansoor11y ago#2
whew!!! u r god sent!
John MoffatJohn MoffatTutor11y ago#3
Thank you :-)
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