G identify characteristics of a coherent financial reporting framework and the barriers to creating such a framework; Flashcards
identify characteristics of a coherent financial reporting framework and the barriers to creating such a framework;
1
Q
“coherent” means
A
the framework fits together logically
2
Q
Coherence and barriers
A
Coherence: Transparency, comprehensiveness, consistency,
Barriers: valuation, standard setting, measurement (A/L, R/E) (principles v. rule based)
3
Q
Standard Settings (3)
A
Principles based: Broad
Rules Based: Specific
Objectives Oriented: Broad and specific
4
Q
Measurement
A
Asset/liability: to measure value at a point in time
Revenue/expenses: to measure values at points through time
