- 9 Marks
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.
Find Related Questions by Tags, levels, etc.
Report an error
