Page 14 - Finac1 Test 1 slides - 2. The Conceptual Framwork

THE CONCEPTUAL FRAMEWORK

Enhancing Characteristics

• Timeliness

• Understandability

• Information that is clear and concise

• Not required to oversimplify complex events

• Can assume reasonable knowledge

• The Cost Constraint

• Pervasive to all information and costs must be justified by benefits

• Costs are borne from two sides

• Preparers: Collecting, processing, verifying and disseminating

information

• Users: Analysing and interpreting

• What is the cost to users of not providing information?

• Can an estimate be made?
14