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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