Page 13 - Finac1 Test 1 slides - 2. The Conceptual Framwork
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THE CONCEPTUAL FRAMEWORK
Enhancing Characteristics
• Comparability, verifiability, timeliness and
understandability
• On their own do not create useful information
• Comparability
• Year on year
• Other entities with similar transactions
• Verifiability
• Information represents what it purports to represents
• Independent observers could reach consensus (even if not
complete agreement)
• A range of possible outcomes can be verifiable (disclose
assumptions)
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