Page 11 - Finac1 Test 1 slides - 2. The Conceptual Framwork
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THE CONCEPTUAL FRAMEWORK




            Elements of the financial statements






            Fundamental Characteristics:




            1. Relevance



                    • Capable of making a difference to decisions - Predictive

                       and / or confirmatory i.e. evaluation past, present or


                       further evaluations.


                    • Materiality


                           • Omitting or misstating could influence decisions


                           • Entity specific

                           • Material by nature and magnitude









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