Page 21 - Finac1 Test 1 slides

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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