Explain the 4 enhancing qualitative characteristics of financial information in general purpose financial reports.

Solutions

Expert Solution

The four enhancing characteristics of financial information in grneral purpose financial reports are as follows,

1. Understandability: The main characteristic of general purpose financial reports are they should be easily understandable to the relevant people including those who don't have much of accounting knowledge.

2. Relevance: The financial information which is being reported in the reports should be relevant to the decision making of the stakeholders.

3. Reliability: The core characteristic of financial reports is reliability one should be able to rely on the information provided in the reports and such information should not be misleading the intended users.

4. Comparability: The last but not the least, the financial reports should be comparable with the reports of other entities. To make this possible the reports should be prepared based on the IFRS standards which are followed universally.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

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.

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...

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?

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?

Please describe enhancing qualitative characteristics of financial accounting reporting

Differentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information with give examples

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.

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...

Discuss the qualitative characteristics of useful financial information

Group Ten Explain the role of qualitative characteristics of accounting information in financial reporting and comment...

Group Ten Explain the role of qualitative characteristics of accounting information in financial reporting and comment on the relationship between the feedback value and the predictive value as part of the qualities of accounting information

Subjects