Page 10 - Finac1 Test 1 slides - 2. The Conceptual Framwork

THE CONCEPTUAL FRAMEWORK

Qualitative characteristics of useful

financial information

• Fundamental characteristics

• Relevance

• Faithful representation

• Applying the fundamental qualitative characteristics

• Enhancing characteristics

• Comparability

• Verifiability

• Timeliness

• Understandability

• Applying the enhancing characteristics

• The cost constraint on useful financial

reporting

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