Conceptual Framework

Question 1

What are the Qualitative Characteristics?

Answer 1

Relevance
Faithful Representation
Enhancing Qualities

Question 2

What are the Fundamental Qualitative Characteristics for Relevance?

Answer 2

PC-Material

Predictive value
Confirmatory value
Materiality

Question 3

What are the Fundamental Qualitative Characteristics for Faithful Representation?

Answer 3

FENC-E

Free From Error
Neutrality
Completeness

Question 4

What are the Fundamental Qualitative Characteristics for Enhancing Qualities?

Answer 4

CUT-like-V

Comparability
Verifiability
Timeliness
Understanability

Question 5

In the Full Conceptual Framework, what are the 10 Elements?

Answer 5

1. Assets
2. Liabilities
3. Equity
4. Investment by owners
5. Distribution to owners
6. Comprehensive income
7. Revenues
8. Expenses
9. Gains
10. Losses

Question 6

What are the recognition Assumptions in the Conceptual Framework?

Answer 6

Easy Going Military Police

1. Economic Entity
2. Going Conern
3. Monetary Unit
4. Periodicity

Question 7

What are the Measurement Principles in the Conceptual Framework?

Answer 7

MRE’s Full

1. Economic Measurement
2. Revenue Recognition
3. Expense Recognition
4. Full Disclosure

Question 8

What are the Constraints in the Conceptual Framework?

Answer 8

1. Cost
2. Industry Practice
3. Conservatism