Question
In: Finance
Discuss the qualitative characteristics of useful financial information
- Discuss the qualitative characteristics of useful financial information
Solutions
Expert Solution
Qualitative characteristics of useful financial informations are as follows-
A. Relevance- financial informations provided must be relevant in nature and they should be associated with the decision-making process and they are material in nature so they could be used by various prospective investors and other stakeholders in making various decisions related to the company
B. Understandability- financial information should be understandable in nature and financial information should provide for easier understandability because they should not be providing for complex informations as most of the users of these financial informations are normal persons who are not associated with finance.
C. Timeliness- financial information must be provided for a specified period of time and the specified period of time should be relevant period of time as it will help the stakeholders in making various decisions.
D. Comparibility- Another qualitative character of financial information is that they should be comparable in nature and they can be compared with one another in order to arrive at various conclusions so they are comparable with other financial informations of same nature or different nature.
E. Reliability- financial information should be reliable is nature and they should provide for various decisions which are based upon the true and fair informations and they should not be misleading the users of financial informations.
jeff jeffy answered 1 year agoRelated Solutions
Qualitative Characteristics The following is a list of qualitative characteristics of useful accounting information identified in...
Qualitative Characteristics
The following is a list of qualitative characteristics of useful
accounting information identified in FASB's and IASB's
Statement of Financial Accounting Concepts No. 8 and
statements describing the qualities.
A. Comparability
B. Decision usefulness
C. Relevance
D. Faithful representation
E. Predictive value
F. Confirmatory value
G. Verifiability
H. Neutrality
I. Free from error
J. Consistency
K. Materiality
L. Timeliness
M. Understandability
N. Completeness
Required:
Select the appropriate letter identifying each quality on the
statement describing the quality.
1....
The fundamental qualitative characteristics that financial information must possess to be useful to the primary users...
The fundamental qualitative characteristics that financial
information must possess to be useful to the primary users of
general purpose financial reports—identified in the Conceptual
Framework are ‘relevance’ and ‘faithful representation’.
Required:
a) Provide one example where information is relevant but not
faithfully represented. (3 marks,
maximum 100 words)
b) Provide one example where information is not relevant but is
faithfully represented. (3 marks,)
maximum 100 words)
c) Provide one example where information is relevant and
faithfully represented. (4 marks,
maximum...
The fundamental qualitative characteristics that financial information must possess to be useful to the primary users...
The fundamental qualitative characteristics that financial
information must possess to be useful to the
primary users of general purpose financial reports—identified in
the Conceptual Framework are
‘relevance’ and ‘faithful representation’.
Required:
a) Provide one example where information is relevant but not
faithfully represented. (3 marks,
maximum 100 words)
b) Provide one example where information is not relevant but is
faithfully represented. (3 marks,
maximum 100 words)
c) Provide one example where information is relevant and faithfully
represented. (4 marks,
maximum...
One of the blocks of IASB conceptual framework is “Qualitative Characteristics” of useful financial information. In...
One of the blocks of IASB conceptual framework is “Qualitative
Characteristics” of useful financial information. In 2010 released
conceptual framework, the qualitative characteristics identified
were fundamental and enhancing characteristics. You are required to
select a company that is listed in Muscat Securities Market.
Examine firm’s financial report and provide the following. (sAttach
the financial statements) a) One example of how a fundamental
characteristic is evident in the financial report. b) An example
each of how two enhancing characteristic is not...
Week 1 The fundamental qualitative characteristics that financial information must possess to be useful to the...
Week 1 The fundamental qualitative characteristics that
financial information must possess to be useful to the primary
users of general purpose financial reports—identified in the
Conceptual Framework are ‘relevance’ and ‘faithful representation’.
Required: a) Provide one example where information is relevant but
not faithfully represented. (3 marks, maximum 100 words) b) Provide
one example where information is not relevant but is faithfully
represented. (3 marks, maximum 100 words) c) Provide one example
where information is relevant and faithfully represented. (4...
One of the blocks of IASB conceptual framework is “Qualitative Characteristics” of useful financial information. In...
One of the blocks of IASB conceptual framework is “Qualitative
Characteristics” of useful financial information. In 2010 released
conceptual framework, the qualitative characteristics identified
were fundamental and enhancing characteristics. You are required to
select a company that is listed in Muscat Securities Market.
Examine firm’s financial report and provide the following. (sAttach
the financial statements)
a) One example of how a fundamental characteristic is evident in
the financial report.
b) An example each of how two enhancing characteristic is not...
Conceptual Framework The qualitative characteristics of useful financial information (this is the complete question) Determine if...
Conceptual Framework
The qualitative characteristics of useful financial
information
(this is the complete question)
Determine if each of the following items contains information
that is relevant and explain why. If you determine that the item is
irrelevant, explain your reasoning.
1.The brand of machinery used in the manufacturing process
2.Net Income
3.The schedule of future payments for operating leases
4.The average salary of employees for each department within the
firm.
list the qualitative characteristics of financial explain the qualitative information and explain how the qualitative characteristics...
list the qualitative characteristics of financial explain the
qualitative information and explain how the qualitative
characteristics serve the objectives of general purpose financial
reports?
list the qualitative characteristics of financial information and explain how the qualitative characteristics serve the objectives...
list the qualitative characteristics of financial information
and explain how the qualitative characteristics serve the
objectives of general purpose financial reports.
The following is a list of qualitative characteristics of useful accounting information identified in the FASB's...
The following is a list of qualitative characteristics of useful
accounting information identified in the FASB's and the IASB's
Statement of Financial Accounting Concepts No. 8 and
statements describing the qualities.
A. Comparability
B. Decision usefulness
C. Relevance
D. Faithful representation
E. Predictive value
F. Confirmatory value
G. Verifiability
H. Neutrality
I. Free from error
J. Consistency
K. Materiality
L. Timeliness
M. Understandability
N. Completeness
Required:
Select the appropriate letter identifying each quality on the
statement describing the quality.
1....
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