Page 22 - Finac1 Test 1 slides

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?

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