1A Flashcards
1
Q
According to FASB Framework: what are the two qualitative characteristics
A
Relevance and Faithful Representation
2
Q
What three areas are included in RELEVANCE
A
Predictive Value - Future trends
Confirmatory Value - Past predictions
Materiality - could affect user decisions
3
Q
What three areas are included in FAITHFUL REPRESENTATION
A
Free from error - no material errors or omissions
Neutral - info w/o bias
Completeness - no info missing (omitted) to form a decision
4
Q
For financial reporting to be useful
A
It must provide info useful for making business decisions and investment decisions
5
Q
Statement of Financial Accounting Concepts (SFAC)
A
Constitutes a FOUNDATION for financial accounting standards
6
Q
A
