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FR – L2 – Q5 – Conceptual Framework for Financial Reporting

Explain relevance, faithful representation, and comparability in financial information per IASB's Conceptual Framework.

Question

CHAPTER TWO
Chapter 2 of the IASB’s Conceptual Framework states that in order to be useful for decision making purposes information must have certain characteristics. It goes on to describe both fundamental and enhancing qualitative characteristics of financial information.
Fundamental qualitative characteristics are relevance and faithful representation. Enhancing qualitative characteristics include comparability.

Required
Explain what is meant by relevance, faithful representation and comparability and how they make financial information useful.

Answer

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Tags: Comparability, Conceptual Framework, Faithful representation, Financial Reporting, IASB, IFRS, Qualitative characteristics, Relevance
Level: Level 2

Topic: Conceptual Framework for Financial Reporting

FR – L2 – Q1 – General Purpose Financial Statements

Explain the meaning of general purpose financial statements per IAS 1.

Question

IFRS Accounting Standards are generally accepted as accounting standards in the preparation of general purpose financial statements in many countries of the world.

GENERAL PURPOSE FINANCIAL STATEMENTS

Required:
(a) Explain briefly the meaning of a general purpose financial statements in accordance with IAS 1 Presentation of Financial Statements. (2 marks)
(b) State and explain briefly any FOUR possible reasons for the prevalence of IFRS Accounting Standards in many countries of the world. (8 marks)
(c) Outline FIVE areas of relevance that the Conceptual Framework might have in respect of the quality of financial reporting. (5 marks)

Answer

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Tags: Conceptual Framework, Financial Reporting Quality, IASB
Level: Level 2

Topic: Role of the IASB and Standard-Setting Process

Tag (SQ): IASB

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FR – L2 – Q5 – Conceptual Framework for Financial Reporting

Explain relevance, faithful representation, and comparability in financial information per IASB's Conceptual Framework.

FR – L2 – Q1 – General Purpose Financial Statements

Explain the meaning of general purpose financial statements per IAS 1.

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FR – L2 – Q5 – Conceptual Framework for Financial Reporting

Explain relevance, faithful representation, and comparability in financial information per IASB's Conceptual Framework.

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FR – L2 – Q1 – General Purpose Financial Statements

Explain the meaning of general purpose financial statements per IAS 1.

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