Page 12 - Finac1 Test 1 slides - 2. The Conceptual Framwork
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THE CONCEPTUAL FRAMEWORK
Elements of the financial statements
Fundamental Characteristics:
2. Faithful representation
• Reflects economic phenomena in words and numbers
• Similar to substance over form?
• Complete, neutral and free from error
• Does not preclude estimates being made
• Use best available information and best processes
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