Question
In: Accounting
Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information with give examples
Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information with give examples
Solutions
Expert Solution
Q1. The fundamental qualities are the basic requirements of financial reporting information. The enhancing qualities are the additional qualities over and above the basic qualities which improve the usefulness of financing information and improve decision making.
For example: Relevance and Faithful information are fundamental qualities of financial information. Understandability, comparability, verifiability and timelines are enhancing qualities of qualitative characteristics financial information.
A fundamental quality like relevant information is capable of making a difference in the decisions of end users regarding the financial information provided. Relevancy is fundamental quality since it can affect end user decision based on information provided. An enhancing quality like timeliness provides information on time to end users so that relevant information is used for decision making on time.
ekkarill92 answered 1 year agoRelated Solutions
Q1. Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information, give examples....
Q1. Differentiate between fundamental qualities
and enhancing qualities for qualitative characteristics of
financial information, give examples.
Q2. Both the unadjusted trial balance and
adjusted trial balance for Smith Corporation on December 31, 2013,
are listed below:
Smith Corporation
Trial Balance
December 31, 2013
Unadjusted
Adjusted
Debit
Credit
Debit
Credit
Cash
Accounts Receivables
Supplies
Prepaid Insurance
Land
Vehicles
Accumulated Depreciation-Vehicles
Notes Payable
Wages Payable
Common Stock
Dividends
Revenue
Wages Expense
Utilities Expense
Insurance Expense
Rent Expense
Depreciation Expense
Supplies Expense
8,000...
What are the fundamental qualitative characteristics and enhancing qualitative characteristic that financial accounting information should possess?...
What are the fundamental qualitative characteristics and
enhancing qualitative characteristic that financial accounting
information should possess? what role do enhancing qualitative
characteristics have relative to the role of fundamental
qualitative characteristics?
briefly explain the qualitative characteristics of financial information, including : A: eundamental qualitative charateristics B: enhancing...
briefly explain the qualitative characteristics of
financial information, including :
A: eundamental qualitative charateristics
B: enhancing qualitative characteristics.
the answer should not be more than 2 pages.
Explain the 4 enhancing qualitative characteristics of financial information in general purpose financial reports.
Explain the 4 enhancing qualitative characteristics of financial
information in general purpose financial reports.
a) List and explain the enhancing qualitative characteristics of financial information under the conceptual framework. (6...
a) List and explain the enhancing qualitative characteristics of
financial information under the conceptual framework. b)
Outline the significance of the following accounting concepts in
the preparation of financial statements. i) Accrual concept (1
mark) ii) Going concern concept (1 mark)
c) ABC Ltd started business on 1/12/15, and its financial year ends
on 30th November each year. The following information was extracted
from the asset register. GHS • 2015 December 1, bought one
equipment costing 97,500 • 2016 May...
Please describe enhancing qualitative characteristics of financial accounting reporting
Please describe enhancing qualitative characteristics of
financial accounting reporting
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...
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...
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?
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