Question Tag: Comparability

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CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)

Discuss IAS 8 provisions for accounting policy changes and implications of prior period errors.

Question

International Accounting Standard 8 (IAS 8) Accounting Policies, Changes in Accounting Estimates and Errors prescribes the criteria for selecting and changing accounting policies, accounting for changes in estimates, and reflecting corrections of prior period errors. Changes in accounting policies and corrections of errors are generally accounted for retrospectively unless this is impracticable; whereas changes in accounting estimates are generally accounted for prospectively.

Required:

(a) Advise the CFO on the circumstances where an entity may change its accounting policies, setting out how a change in accounting policy is applied and the difficulties faced by entities when a change in accounting policy is made. (8 Marks)

(b) Discuss why the current treatment of prior period errors could lead to earnings management by companies, together with any further arguments against the current treatment. (7 Marks)

Answer

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Tags: Accounting Policies, Comparability, Earnings Management, IAS 8, Prior Period Errors, Retrospective Application
Level: Level 3

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: NOV 2014

CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)

Explanation of the significance and shortcomings of Earnings Per Share (EPS) for Soar Plc’s management.

Question

The objective of IAS 33 – Earnings Per Share is to improve the comparability of the performance of different entities in the same period and of the same entity in different accounting periods. This is done by prescribing the methods for determining the numbers of shares to be included in the calculation of earnings per share. The management of Soar Plc has sought your professional advice on the application of IAS 33.

Required: Advise the management of Soar Plc on the following:

i. Significance of Earnings Per Share (EPS). (5 marks)
ii. Shortcomings of Earnings Per Share (EPS). (5 marks)

Answer

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Tags: Comparability, EPS, Financial Performance, Financial Reporting, IAS 33, Investment Analysis
Level: Level 3

Topic: Earnings Per Share (IAS 33)

AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities

Definition of consistency in using accounting principles for comparability.

Question

The use of the same accounting principles from year to year so that the successive financial statements issued by a business entity will be comparable is known as…………………….

Answer

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Tags: Accounting principles, Comparability, Consistency, Financial Statements
Level: Level 3

Topic: Audit of Complex Entities
Series: NOV 2011

FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information

Explain any two enhancing characteristics of financial information as per IFRS.

Question

Explain any TWO enhancing characteristics of financial information. (2 Marks)

Answer

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Tags: Comparability, Enhancing Characteristics, Financial Information, Timeliness, Understandability, Verifiability
Level: Level 2

Topic: Regulatory Framework for Financial Reporting
Series: NOV 2022

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

Question

Explain the following qualitative characteristics of financial statements reported under IFRS and assess how they make the information very useful:

i. Relevance
ii. Comparability
iii. Understandability
iv. Faithful Representation

Answer

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Tags: Comparability, Conceptual Framework, Faithful Representation, Financial Reporting, IFRS, Qualitative Characteristics, Relevance, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAY 2018

FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting

Explain how consistency in accounting policies enhances comparability in financial reporting.

Question

Comparability is one of the enhancing qualitative characteristics of useful financial information. Comparability improves the usefulness of financial statements and it is achieved by consistency.

Required:

Explain the role of consistency in relation to changes in accounting policy and the need for comparability.

Answer

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Tags: Accounting Policies, Comparability, Consistency, Financial Reporting
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAR 2023

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

Question

The IASB’s Conceptual Framework identifies, among others, the qualitative characteristics of relevance, faithful representation, comparability, and understandability.

Required:
Justify with an example each how the qualitative characteristics will apply to the treatment of tangible non-current assets. (10 marks)

Answer

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Tags: Comparability, Faithful Representation, Qualitative Characteristics, Relevance, Tangible Non-Current Assets, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: APR 2022

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

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

Question

The qualitative characteristics of relevance, faithful representation 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.

Required: Discuss the concept of relevance, faithful representation and comparability and how they make financial information useful.

Answer

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Tags: Comparability, Faithful Representation, Financial Reporting, Qualitative Characteristics, Relevance
Level: Level 3

Topic: Accounting Concepts
Series: MAY 2016

PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework

This question explains the qualitative characteristics that the financial statement may lack.

Question

Given the information available, explain TWO qualitative characteristics of a general purpose financial report that the financial statement you have prepared in question (a) lacked. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Financial Reporting, Public Sector, Qualitative Characteristics, Timeliness, Understandability
Level: Level 2

Topic: General purpose financial reporting framework
Series: MAY 2017

CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)

Discuss IAS 8 provisions for accounting policy changes and implications of prior period errors.

Question

Required:

(b) Discuss why the current treatment of prior period errors could lead to earnings management by companies, together with any further arguments against the current treatment. (7 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Comparability, Earnings Management, IAS 8, Prior Period Errors, Retrospective Application
Level: Level 3

Topic: Accounting Policies, Changes in Accounting Estimates, and Errors (IAS 8)
Series: NOV 2014

CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)

Explanation of the significance and shortcomings of Earnings Per Share (EPS) for Soar Plc’s management.

Question

Required: Advise the management of Soar Plc on the following:

i. Significance of Earnings Per Share (EPS). (5 marks)
ii. Shortcomings of Earnings Per Share (EPS). (5 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, EPS, Financial Performance, Financial Reporting, IAS 33, Investment Analysis
Level: Level 3

Topic: Earnings Per Share (IAS 33)

AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities

Definition of consistency in using accounting principles for comparability.

Question

The use of the same accounting principles from year to year so that the successive financial statements issued by a business entity will be comparable is known as…………………….

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting principles, Comparability, Consistency, Financial Statements
Level: Level 3

Topic: Audit of Complex Entities
Series: NOV 2011

FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information

Explain any two enhancing characteristics of financial information as per IFRS.

Question

Explain any TWO enhancing characteristics of financial information. (2 Marks)

Answer

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Tags: Comparability, Enhancing Characteristics, Financial Information, Timeliness, Understandability, Verifiability
Level: Level 2

Topic: Regulatory Framework for Financial Reporting
Series: NOV 2022

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

Question

Explain the following qualitative characteristics of financial statements reported under IFRS and assess how they make the information very useful:

i. Relevance
ii. Comparability
iii. Understandability
iv. Faithful Representation

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Conceptual Framework, Faithful Representation, Financial Reporting, IFRS, Qualitative Characteristics, Relevance, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAY 2018

FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting

Explain how consistency in accounting policies enhances comparability in financial reporting.

Question

Comparability is one of the enhancing qualitative characteristics of useful financial information. Comparability improves the usefulness of financial statements and it is achieved by consistency.

Required:

Explain the role of consistency in relation to changes in accounting policy and the need for comparability.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Policies, Comparability, Consistency, Financial Reporting
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: MAR 2023

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

Question

The IASB’s Conceptual Framework identifies, among others, the qualitative characteristics of relevance, faithful representation, comparability, and understandability.

Required:
Justify with an example each how the qualitative characteristics will apply to the treatment of tangible non-current assets. (10 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Qualitative Characteristics, Relevance, Tangible Non-Current Assets, Understandability
Level: Level 2

Topic: Conceptual Framework for Financial Reporting
Series: APR 2022

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

Answer

Find Related Questions by Tags, levels, etc.

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

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

Question

Required: Discuss the concept of relevance, faithful representation and comparability and how they make financial information useful.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Faithful Representation, Financial Reporting, Qualitative Characteristics, Relevance
Level: Level 3

Topic: Accounting Concepts
Series: MAY 2016

PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework

This question explains the qualitative characteristics that the financial statement may lack.

Question

Given the information available, explain TWO qualitative characteristics of a general purpose financial report that the financial statement you have prepared in question (a) lacked. (4 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Comparability, Financial Reporting, Public Sector, Qualitative Characteristics, Timeliness, Understandability
Level: Level 2

Topic: General purpose financial reporting framework
Series: MAY 2017

Question Tag: Comparability

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CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)

Discuss IAS 8 provisions for accounting policy changes and implications of prior period errors.

You're reporting an error for "CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)"

CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)

Explanation of the significance and shortcomings of Earnings Per Share (EPS) for Soar Plc’s management.

You're reporting an error for "CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)"

AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities

Definition of consistency in using accounting principles for comparability.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities"

FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information

Explain any two enhancing characteristics of financial information as per IFRS.

You're reporting an error for "FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information"

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

You're reporting an error for "FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting"

FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting

Explain how consistency in accounting policies enhances comparability in financial reporting.

You're reporting an error for "FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting"

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

You're reporting an error for "FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting"

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.

You're reporting an error for "FR – Nov 2015 – L2 – Q4a – Conceptual Framework for Financial Reporting"

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

You're reporting an error for "CR – May 2016 – L3 – Q4b – Accounting and reporting concepts"

PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework

This question explains the qualitative characteristics that the financial statement may lack.

You're reporting an error for "PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework"

CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)

Discuss IAS 8 provisions for accounting policy changes and implications of prior period errors.

You're reporting an error for "CR – Nov 2014 – L3 – SC – Q7 – Accounting Policies, Changes in Accounting Estimates and Errors (IAS 8)"

CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)

Explanation of the significance and shortcomings of Earnings Per Share (EPS) for Soar Plc’s management.

You're reporting an error for "CR – Nov 2016 – L3 – Q2a – Earnings Per Share (IAS 33)"

AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities

Definition of consistency in using accounting principles for comparability.

You're reporting an error for "AAA – Nov 2011 – L3 – SAII – Q15 – Audit of Complex Entities"

FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information

Explain any two enhancing characteristics of financial information as per IFRS.

You're reporting an error for "FR – Nov 2022 – L2 – Q4b – Enhancing Characteristics of Financial Information"

FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting

Explain the qualitative characteristics of financial statements under IFRS and assess how they make financial information useful

You're reporting an error for "FR – May 2018 – L2 – Q5a – Conceptual Framework for Financial Reporting"

FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting

Explain how consistency in accounting policies enhances comparability in financial reporting.

You're reporting an error for "FR – March 2023 – L2 – Q5b – Conceptual Framework for Financial Reporting"

FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting

Justify how qualitative characteristics of financial information apply to tangible non-current assets using examples.

You're reporting an error for "FR – April 2022 – L2 – Q5a – Conceptual Framework for Financial Reporting"

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.

You're reporting an error for "FR – Nov 2015 – L2 – Q4a – Conceptual Framework for Financial Reporting"

CR – May 2016 – L3 – Q4b – Accounting and reporting concepts

Discuss the concepts of relevance, faithful representation, and comparability, and how they make financial information useful to users of financial statements.

You're reporting an error for "CR – May 2016 – L3 – Q4b – Accounting and reporting concepts"

PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework

This question explains the qualitative characteristics that the financial statement may lack.

You're reporting an error for "PSAF – May 2017 – L2 – Q4b – General purpose financial reporting framework"

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