Conceptual Framework

Question 1

Qualitative characteristics of useful financial information

Answer 1

Relevance (materiality, predictive, confirmatory) Faithfull - complete (descr, nature, measurement basis, process) - neutral (not manipulated to favor or unfavor) - free from error (no error in selecting/applying)

Question 2

Enhancing characertistics

Answer 2

Comparability (across + over time - consistancy - alike items aggregated, dissimilar items segregared) Verifiability Timeliness Understandablity (clear, concise, classification, caracterisation, presentation)

Question 3

Elements of Financial Statements

Answer 3

Asset -> Ressource controlled by an entity as a result of past events. Probable future inflow of economic ressources

Liabilities -> Present or constructive obligation arising from past event, probable future outflow of economic ressources

Equity -> Residual interest in Assets net of Liabilities I

ncome/Gain->increase in assets/decrease in liabs

Expenses/Loss->decrease in assets/increase in liabs Capital Maintenance concepts