Accounting policy changes

FR – Nov 2015 – L2 – Q4a – Conceptual Framework for Financial Reporting

This question asks for an explanation of the qualitative characteristics of understandability and comparability in financial reporting, along with the role of consistency in comparability.

Question

(a) Two of the enhancing qualitative characteristics of useful financial information contained in the IASB’s Conceptual Framework for Financial Reporting are understandability and comparability.

Required:
Explain the meaning and purpose of the above characteristics in the context of financial reporting and discuss the role of consistency within the characteristic of comparability in relation to changes in accounting policy. (6 marks)

Answer

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Tags: Accounting policy changes, Comparability, Comparisons, Consistency, Financial Reporting, IASB Conceptual Framework, Qualitative Characteristics, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: NOV 2015

Question Tag: Accounting policy changes

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FR – Nov 2015 – L2 – Q4a – Conceptual Framework for Financial Reporting

This question asks for an explanation of the qualitative characteristics of understandability and comparability in financial reporting, along with the role of consistency in comparability.

FR – Nov 2015 – L2 – Q4a – Conceptual Framework for Financial Reporting

This question asks for an explanation of the qualitative characteristics of understandability and comparability in financial reporting, along with the role of consistency in comparability.

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