Lecture 1 Flashcards
1
Q
What is the objective of FR as set out by the conceptual framework
A
Objective is to provide financial information about the reporting entity that is useful to users in making decisions
2
Q
What makes information useful?
A
Relevant- does it make a difference in the decision of users? Can have a predicative or confirmation value
Faithful representation- true and fair needs to have completeness, neutrality and free from error
3
Q
What are the enhancing characteristics?
A
Compatibility
Verifiability
Timeliness
Understandability
