PDF/X-1:2001 <]>> This exercise should be completed after reading pages 11-14 of Chapter 1. The decision usefulness of information is enhanced if it is available to users in time for it to be capable of influencing their decisions. c. Comparability b. Timeliness Financial statement users are assumed to have no faithful representation, as long as there is suf cient disclosure of how the fair value has been determined. The financial statements should contain no errors, so that the information contained within them presents a fair view of the organization. The most notable of these gods are the planet, the sun, and the twin moons. industry. Complete b. yF>=3` Conservatism Hence, the, amounts that are expected to be spent in respect of goods already sold are, International Financial Reporting Standards. Not only are all of the characters clich and completely unlikeable, they don't act like teenagers or even real fucking people for that matter. 28X601Y0-el0a`8-TC@4aLrpB: "4n$j`4aba}xa #OV jc4@(nJb clarify in Chapter 2 of the revised CF (i.e. 105 88 Prudence does not justify deliberate, overstatement of liabilities or expenses or deliberate understatement of assets or, income, because the financial statements would not be neutral and, therefore, not, The conceptual framework does not include concepts or principles for selecting which, measurement basis should be used for particular elements of financial statements or in. 3. b. decision to be made is useless. 0000004148 00000 n kv"!MboZ8msGM6jcM]Qm11!AC[-^m;DII889*-.%Umjkfns/cS 5ogY^pvZvM0o 0rDAiIz(]1&uFv9kO NNm'H1l2L31.gPnC(v8,{N%=?J)yM8~ ;I>%8~uSof$Re0Cjn qualified individuals to arrive at essentially similar o`SD772,)AQi1er+ Cz' the users and the decision made is c. Comparability, understandability and endstream endobj 47 0 obj <> endobj 51 0 obj <> endobj 130 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 131 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 132 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 133 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 134 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 135 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 137 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 138 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 139 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 140 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 141 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 142 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 143 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 144 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 145 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 148 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 149 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 150 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 151 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 152 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 153 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 154 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 156 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 157 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 158 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 159 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 160 0 obj <><>]>>/ShadingType 2>>/Type/Pattern>> endobj 164 0 obj <>stream c. Relevance and reliability But what if both are present but they point in different directions? It is relevant information not faithfully represented information that must be capable of making a difference in users' decisions. This statement applies to faithfully represented information: faithfully represented information must be free from error, neutral and complete. 0000003117 00000 n 12 tendency to recognize favorable events early is Person as author : Doumas, Christos In : History of humanity: scientific and cultural development, v.II: From the third millennium to the seventh century B.C., p. 146-151 Language : English Also available in : Also available in : Franais Year of publication : 1996 Verifiability provides users with assurance that information is faithfully presented and reports the economic phenomena it purports to represent. Relevance - financial information is regarded as relevant if it is capable of influencing the decisions of users. financial statements must be in line with the ground reality or in other words the financial position and financial performance of the entity according to the financial statements should be the same as the position and performance is in reality. b. a. Relevance For example, only the effects of those transactions should be reported that meets the recognition criteria of the elements of the financial statements. c. Information is measured similarly across the xref 0000004259 00000 n Important aspects, A legal debt constitutes a liability, but a liability is not restricted to being a legal, debt. Correct. endstream endobj 3 0 obj <> endobj 6 0 obj <> endobj 7 0 obj <> endobj 13 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 14 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 15 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 16 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 17 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 18 0 obj <>/ExtGState<>/Font<>/ProcSet[/PDF/Text/ImageC/ImageI]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 124 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/XObject<>>>/TrimBox[0.0 0.0 595.276 841.89]/Type/Page>> endobj 127 0 obj <>stream Faithful representation refers to an informations ability to represent underlying economic phenomena faithfully. There is sometimes a trade-off between relevance and faithful representation and judgement is required to provide the appropriate balance. Faithful representation is one of the qualitative characteristics of financial information that enhances reliability. 3 0 obj 0000004947 00000 n / Faithful representation is achieved by presenting the transactions and events in the way they are reasonably expected to be reported in the financial statements. information is comparability. Example 2, Exercise 1.4 - Control, Accounting and Accountability, Exercise 1.7 - The users of accounting information, Exercise 1.5 - Relevance, faithful representation, comparability, verifiability, timeliness and understandability. d. Stable monetary unit. C. Only statement Il is FALSE. <>>> But there is one exception to this rule which will be discussed later. l The way in which it portrays suicide and depression as some kind of quirky character traits is fucking disgusting. The principle of objectivity includes the concept of Verifiability if information can be verified (e.g. 13 Conceptual Framework focuses primarily on the ?OggNCc -WB(vK*ClLk> d. Representational faithfulness, Allowing entities to estimate rather than physically 0000096849 00000 n Must have predictive and confirmatory value. Objectivity is assumed to be achieved when a and presented in similar manner, the information verifiability % and economic activities and review the it has predictive value) or it can confirm past evaluations about economic phenomenon (i.e. Small expenditures for tools are expensed immediately. When they are unable to understand the information presented, the IASB recommends using an adviser. 2$j5fh,:0 xVt]LL`} 2RR1,#Qee? rTn;=;QN gj[cdZ@hn;e{o4g=Q6`d?Xa3 |R}`v between years. }0H]Q 9]LmDBlI&{L fDq'j}C|_nY u5? faithful representation is complete, neutral, and free from error. Relevance and faithful representation should have primacy compared to comparability and consistency. Faithful representation is achieved by presenting the transactions and events in the way they are reasonably expected to be reported in the financial statements. 0000061950 00000 n 0000005914 00000 n 0000025211 00000 n it has confirmatory value) or both. Kaplan Financial Limited. ~ needs of internal users of financial information. a. Relevance represent. immediately. interests. d. Conservative. another. 1 Question 1: Relevance, faithful representation, comparability, verifiability, timeliness and understandability. This Product includes content from the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for. Relevance and faithful representation are described as two fundamental qualitative characteristics of useful financial information, as stated in paragraph QC2 of ED: For financial information to be useful, it must possess two fundamental qualitative characteristics relevance and faithful representation. 0000053569 00000 n WA5 {|IR`pfXMZ\a-!A }jjA;}SmTciO TtvWOLO [>Ubld3 t}~Ji >99vzTp./Wel|)\/7zsFS[(ohfg-#FDVqOrQCA/@k)A.dH~?;V$vm m?$R>q8w2CSYW_IE*2I@yrU~o9: gNQ&3rT]TY`:6S,"1!Bm;Jk a. startxref <> 0000060974 00000 n However, prudence can, only be exercised within the context of the other qualitative characteristics in the, conceptual framework, particularly relevance and the faithful representation of, transactions in financial statements. Relevant, not faithfully represented, information must be capable of making a difference in users' decisions. 2 0 obj d. Comparability, understandability, verifiability Fundamental qualitative characteristics of financial d. Must possess all of these. A fundamental qualitative characteristic is 10 statement is true in relation to the enhancing 0000025357 00000 n Information must be decision-useful to all users. Accounting can involve very complex calculations, details and disclosures. The four enhancing qualitative characteristics continue to be timeliness . legal form of a transaction, the economic substance it 0000003926 00000 n 0000014757 00000 n 0000005519 00000 n b. Understandability a. Comparability and understandability a. Predictive value and confirmatory value application/pdf 0000007336 00000 n Uniformity, relevance, reliability, consistency, faithful representation In the Conceptual Framework materiality is an aspect of: Select one: a. relevance b. faithful representation C. verifiability d. timeliness According to the Conceptual Framework which statement concerning the recognition of liabilities is not true? never be changed. Accountants (IESBA), published by the International Federation of Accountants (IFAC) in December 2012 and is used with permission of IFAC. None of these three statements indicates that accounting information should be presented in a simple way so that everyone can understand it. a. :_mV*'Pg@8k?{v@%'n?QP2CT2lnX7;#NVd!5f{/u=o[#lyEfNW;Gz )N7\. WE} Financial information must not only represent relevant economic data it must also faithfully represent the phenomena that it purports to represent. 0000097573 00000 n Involves the payment or receipt of cash. 0000002097 00000 n count inventory at interim periods is an example of b. Verifiability and timeliness b. Predictive value, confirmatory value and c. Accounting entities give similar events the same The new basic definition of faithful representation is the "correspondence or agreement between the accounting measures or descriptions in financial reports and the economic phenomena they purport to represent." (Par. when the result is a consistent rate of return. amount increased to management estimate of a. Relevance should be properly disclosed. ^`G#Y;1Kd>wJ0 tTK a. Relevance What is an enhancing quality of accounting b. reasonable knowledge of business and financial Information that possesses the quality of: relevance has the ability to make a difference in the decision-making process. This is known as true and fair override. Statement Il. Inclusion of a degree of caution knowledge. d. Predictive value, confirmatory value, timeliness to provide additional disclosures when compliance with the specific equirements in IFRSs is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entitys financial position and financial performance. 0000015126 00000 n Corporate author : International Scientific Committee for the drafting of a General History of Africa Person as author : Ki-Zerbo, Joseph [editor] What is the underlying concept governing the GAAP xmp.did:AD80C0D8132068118C14BAACCA576644 particular circumstances. that an accounting transaction shall be supported ` . 0000059748 00000 n 0000059686 00000 n d. Reliability, 10 usefulness of providing information in financial The faithful representation concept should extend to all parts of the financial statements, including the results of operations, financial position, and cash flows of the reporting entity. 0 According to IAS 1 fair presentation requires the faithful representation of the effects of transactions, other events and conditions in accordance with the definitions, recognition criteria and substance of transactions. Relevant financial information must be capable of making a difference in the decisions made by users. D A( Relevant Incorrect. 0000097081 00000 n Accounting information is presented in a simple way so that everyone can understand it. endstream endobj 248 0 obj <>stream Excluding complex information just because it is difficult to understand would not result in relevant information that was faithfully presented. The overriding qualitative characteristic of b. d. Neutrality, Which of the following is the best description of 2013-04-09T09:40:30+02:00 confirmatory value. 0000061209 00000 n 0000003041 00000 n detriment of others? a. Summarization d. Feedback value, Which of the following accounting concepts states to present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information. IAS 8 sets out a hierarchy of authoritative guidance that management considers in the absence of an IFRS that specifically applies to an item. Substance over form b. So the difference between these two documents must be clear as framework does not amount to standard and is separate from International Accounting Standards. of the phenomenon. a. Relevant information may be either predictive (and so assist users in making predictions about the future), or it may be confirmatory (and so assist users to assess the accuracy of past predictions). b. contribute to the decision-usefulness of International Accounting Standards (IASs), International Financial Reporting Standards (IFRSs), International Standards on Auditing (ISAs). b. Primary Characteristics (Relevance, Faithful Representation)For information to be useful for decision-making, it must be both relevant and a faithful representation of the economic phenomena that it represents. Preparers of financial statements may face a dilemma in satisfying both criteria at once.' Discuss situations where there might be a conflict. and faithful representation? xmp.id:0E2B5AB4072068118A6DEAF31C0948FD I UYP%)CVu engaged in the same industry has been prepared uuid:aecbdef8-378f-4474-85d1-883a272b1460 Conservatism a. determining whether an item is material. b. Understandability 0000064021 00000 n 0000003488 00000 n Under such circumstances management may depart from the provisions of the standard. >d4%?s G'']&dwz=h^"1+3r!L;x*q%lC`Z05/2/'1 *W 5 ^Im-:y3K^@(q. information FR. c. Monetary unit For example, an entity may decide as a matter of normal business policy to rectify, faults in its products even after the warranty period has expired. Also when framework and standards are in conflict over any matter then standards prevail. 1 The qualitative characteristics do provide some guidance. Page reference: 11-14, Exercise 1.1 - What Is Accounting? 5 / 8. [6] [16] False b. Incorrect. Correct. a. Understandability A coherent framework is a coherent system of Can be depended on to represent the economic For example, if a company reports in its balance sheet that it had $1,200,000 of accounts receivable as of the end of June, then that amount should indeed have been present on that date. d. Free from error. Neither of the two statements is FALSE B. 0000004812 00000 n d. Information is verifiable. Similarly, the title of CS2 is "Qualitative Conceptual Framework (Objective of Financial Reporting), Conceptual Framework and Accounting Standards, Chapter-13- Solution Manual for Business Combination, Polytechnic University of the Philippines, Don Honorio Ventura Technological State University, Bachelor of Science in Electronics Engineering, Buhay, Mga Gawain at Sinulat ni Rizal (HIST 1023), Intelektuwalisasyon ng Wikang Filipino (GEED 10123), Bachelor of Science in Civil Engineering (BSCE), Law On Obligations And Contracts (BUSLAW1), The Life and Works of Dr. Jose Rizal (SOC 700-3), Disaster Readiness & Risk Reduction (DRRR 01), Entrepreneurship In Tourism And Hospitality (THC1109), Financial Accounting And Reporting (AC108), Timeline of Jose Rizal's chilhood and early education, Exam 2 September 2018, questions and answers, 4As (Activity, Analysis, Abstraction, Application) Lesson Plan, Introduction to Philosophy Module 1 Grade 12, Introduction TO Philosophy OF THE Human Person Module 2, Sample/practice exam 15 October 2020, questions and answers, PE 12 HOPE 3 Q1 Module 1 Lesson 1 4 by Shine, 21ST Century Filipino writers report Manuscript, Ap10 q1 mod2 mga isyung pangkapaligiran Final 08032020, 21ST CENTURY FROM THE PHILIPPINES AND THE WORLD, Solution manual special transactions millan 2021 chapter 2, English-for-academic-and-professional-purposes-quarter-2-module-2 compress, 1. cblm-participate-in-workplace-communication, Activity 1 Solving the Earths Puzzle ELS Module 12, The financial accounting information is directed d. Decision usefulness, Which of the following terms best describes )), Intermediate Accounting (Conrado Valix, Jose Peralta, Christian Aris Valix), Conceptual Framework and Accounting Standards (Conrado T. Valix, Jose F. Peralta, and Christian Aris M. Valix), Auditing and Assurance Concepts and Applications (Darell Joe O. Asuncion, Mark Alyson B. Ngina, Raymund Francis A. Escala), Science Explorer Physical Science (Michael J. Padilla; Ioannis Miaculis; Martha Cyr), The Tragedy of American Diplomacy (William Appleman Williams), Calculus (Gilbert Strang; Edwin Prine Herman), End of Chapter Questions with Solutions (CFAS 2019 Edition). x Pgs {_"/hri08q^;3R`mW=sgx=f60QxXJV#ty0LG~9W\#lEP5$e`)El Compare, for example: [4] a. Liz bought a watch. d. All of the choices are correct. To be a faithful representation, an information must Abstract While the FASB had regarded relevance and reliability as two of the most important qualitative characteristics for years, it replaced reliability with faithful representation revising its Concepts Statement No. past event, giving rise to the entitys control over future economic benefits. assurance that is reasonably free of error and bias? Information that is available to users in time to influence their decisions has greater decision usefulness than information that is not received in time to influence those decisions. Relevant information may be either predictive and assist users in making predictions about the future, or it may be confirmatory by assisting users to assess the accuracy of past predictions. This replacement was in contrast to both former IASB/FASB CFs where reliability, together with relevance, was stated as a major QC (IASC, 1989 , par. (Gerard J. Tortora), The Law on Obligations and Contracts (Hector S. De Leon; Hector M. Jr De Leon), Principles of Managerial Finance (Lawrence J. Gitman; Chad J. Zutter), Unit Operations of Chemical Engineering (Warren L. McCabe; Julian C. Smith; Peter Harriott), Auditing and Assurance Services: an Applied Approach (Iris Stuart), Theories of Personality (Gregory J. Feist), Rubin's Pathology (Raphael Rubin; David S. Strayer; Emanuel Rubin; Jay M. McDonald (M.D. verifiability. endstream endobj 106 0 obj <> endobj 107 0 obj [108 0 R] endobj 108 0 obj <>>> endobj 109 0 obj <> endobj 110 0 obj <> endobj 111 0 obj <> endobj 112 0 obj <> endobj 113 0 obj <> endobj 114 0 obj <> endobj 115 0 obj <> endobj 116 0 obj <> endobj 117 0 obj <> endobj 118 0 obj <> endobj 119 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 120 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 121 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 122 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 123 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 124 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 125 0 obj <>/Border[0 0 0]/Type/Annot>> endobj 126 0 obj <> endobj 127 0 obj <> endobj 128 0 obj <> endobj 129 0 obj <> endobj 130 0 obj <> endobj 131 0 obj <> endobj 132 0 obj <> endobj 133 0 obj <> endobj 134 0 obj <> endobj 135 0 obj <> endobj 136 0 obj <> endobj 137 0 obj <> endobj 138 0 obj <> endobj 139 0 obj <> endobj 140 0 obj <>/Font<>/ProcSet[/PDF/Text/ImageC]/Properties<>/ExtGState<>>> endobj 141 0 obj <> endobj 142 0 obj <> endobj 143 0 obj <> endobj 144 0 obj <>stream b. Verifiability 0000006546 00000 n The information should be presented in a manner Physical form and the right of ownership are not essential to the existence of an asset. d. Relevance, According to the Conceptual Framework, predictive endstream endobj 191 0 obj <>/Size 105/Type/XRef>>stream For example, property held on a lease is an asset if the entity controls the benefits that. Verifiability provides users with assurance that information is relevant. Qualitative Characteristics Relevance and faithful representation remain as the two fundamental qualitative characteristics. d. Representational faithfulness. needs and desires of specific users. d. Accounting procedures should be adopted 1. O Scribd o maior site social de leitura e publicao do mundo. an example of conservatism. 0000006149 00000 n b. materiality xmp.iid:12FEFA8C072068118A6DEAF31C0948FD readers? c. Relevance endobj b. Verifiability a. refer to new projects undertaken. and timeliness. But its up to management to ensure that financial statements achieve true and fair view by achieving the objectives of the financial statements as laid down under IASB Framework. biased in favor of one group of users to the 0000029481 00000 n provided in the financial statements useful to the Incorrect. Consistency of presentation and measurement of the same items in the same way from year to year will help to achieve comparability. 1 0 obj <>]/Pages 3 0 R/Type/Catalog/ViewerPreferences<>>> endobj 128 0 obj <>/Font<>>>/Fields[]>> endobj 2 0 obj <>stream 0000006227 00000 n 0000007966 00000 n particularly the characteristics of relevance and faithful representation. Syllabus A. materiality 0000005678 00000 n c. Relevant {=$Um6wi0l&^+Oy~J+SWOzydmg/0}7~H}={$3bFf1kY7g}g99?all3gU ktmS*lzf3\0n!IT5s16f^>K$#J\]`bjg L}p~>)A"Q=$>\ASh:-+FxAq[gAm@s$tVnsffUN- G`3U&BXowFUu|n}7L-zUT i-.v0?ETQzw@C+h 4G zOE o C6LRJH"AYm )()%Kwi4 - 9j;_fP[#al9>-4&~P,v,#!TfhVCXP"8wmgGYUfVNBg~aX/W%Mq#SB}l>41yE3i'=rq=G!e Y>se*-1Czxr5!O@T$#ho)x^'C,!m>w5MmnJL>`Ftb%[D?Td%>x Extension of the apparatus for the representation of syntactic structure The kind of syntactic analysis and representation we introduced in Ch. In virtually all circumstances, an entity achieves a fair presentation by compliance with applicable IFRSs. A fair presentation also requires an entity: As stated earlier the general rule is that if there is a conflict on any matter between the framework and the standard then standards prevail i.e. 0000096749 00000 n 0000096403 00000 n a. Relevance and faithful representation Timeliness and verifiability Understandability and comparability Question 14 120 seconds Q. Qualitative characteristic that financial information must possess to be useful to the primary users of general purpose financial reports include answer choices Timeliness Verifiability Understandability information for decision-making purposes. d. Management reports to shareholders regularly Qualitative Characteristics of Financial Information, Trade-off between relevance and faithful representation. b. Relevance d. Verifiability. When financial information is relevant and faithfully represents the underlying economic phenomena, its usefulness is enhanced by comparability, verifiability, timeliness, and understandability. Gains and losses are shown separately on the d. Neutrality, Which of concept of accounting holds that, to the B~fHkDGe"8VX5XE=Gv-nqDk{t';5 6sy`EO,WbV2ITQ:tKW/0-dmFSpbL8D>O$B;=x*w.VbH>E^wk^MNTj=\X interrelated objectives and fundamentals that lead c. Are understandable, comparable, verifiable and Faithful representation is affected by the use of estimates and by uncertainties, associated with items recognised and measured in financial statements. a. Relevance Correct. a. Relevance refers to the property of information being capable of making a difference in decisions made by users of that information. Adobe InDesign CS6 (Macintosh) 1#^aF jQQbF{dq&ubgs}?.y{k;3F=_ ?4_ the information contained in financial 0000029803 00000 n 0000000016 00000 n Relevance and faithful representation are the two fundamental qualitative characteristics of useful financial information. The enhancing qualitative characteristics: Incorrect. 0000007504 00000 n For example, a business could report that it had a $500,000 loan as of the balance sheet date, but this would not be considered complete unless additional information about the loan were provided, such as its maturity date. 0000030385 00000 n from application/x-indesign to application/pdf Neutrality requires an unbiased depiction of economics and involves exercise of prudence such that neither current period earnings are overstated or understated nor those of future periods. c. Information is measured and reported in a Correct. c. Understandability to represent is an example of the concept of However, under extremely rare circumstances management may conclude that compliance with the certain provisions of standards will be so misleading that it would conflict with the objectives of financial statements as stated in the IASB Framework. xmp.did:AD80C0D8132068118C14BAACCA576644 In order to make such a difference in users' decisions, financial information must faithfully represent all the facts and figures so it is true to say that financial information must be both relevant and faithfully represented. a. c. Is understandable by reasonably informed users 2 in 2010. Information that has no bearing on an economic Created at 10/23/2012 11:53 AM by System Account, (GMT) Greenwich Mean Time : Dublin, Edinburgh, Lisbon, London, Last modified at 11/30/2012 11:42 AM by System Account, Auditors' responsibilities regarding fraud, Auditors' responsibilities regarding laws & regulations, Reporting to those charged with governance, Reporting deficiencies in internal control systems, The components of an internal control system, The scope and regulation of audit and assurance, Critical success factors and core competences, Non-financial performance indicators (NFPIs), Theories of corporate social responsibility, Conflicts of interest and ethical threats, The consolidated statement of financial position, Controlling the Financial Reporting System, The trial balance and errors in the FR system, The Context and Purpose of Financial Reporting, International Financial Reporting Standards, Chapter 4: Types of cost and cost behaviour, Chapter 5: Ordering and accounting for inventory, Chapter 9: Marginal and absorption costing, Chapter 10: Books of prime entry and control accounts, Chapter 11: Control account reconciliations, Chapter 13: Correction of errors and suspense accounts, Chapter 18: Consolidated statement of financial position, Chapter 19: Consolidated income statement, Chapter 2: Statement of financial position and income statement, Chapter 20: Interpretation of financial statements, Chapter 21: The regulatory and conceptual framework, Chapter 7: Irrecoverable debts and allowances for receivables, Chapter 9: From trial balance to financial statements, Chapter 1: Essential elements of legal systems, Chapter 2: International business transactions: formation of the contract, Chapter 3: International business transactions: obligations, Chapter 4: International business transactions: risk and payment, Chapter 5: International business forms agency, Chapter 6: Types of Business Organisation, Chapter 7: Corporations and legal personality, Chapter 1: Traditional and advanced costing methods, Chapter 11: Performance measurement and control, Chapter 12: Divisional performance measurement and transfer pricing, Chapter 13: Performance measurement in not-for-profit organisations, Chapter 3: Planning with limiting factors, Chapter 5: Make or buy and other short-term decisions, Chapter 9: Standard costing and basic variances, Chapter 15: Additional practice questions, Chapter 4: Ethics and acceptance of appointment, Chapter 1: The financial management function, Chapter 10: Working capital management cash and funding strategies, Chapter 19: Business valuations and market efficiency, Chapter 2: Capital budgeting and basic investment appraisal techniques, Chapter 3: Investment appraisal discounted cash flow techniques, Chapter 4: Investment appraisal further aspects of discounted cash flows, Chapter 5: Asset investment decisions and capital rationing, Chapter 6: Investment appraisal under uncertainty, Chapter 8: Working capital management inventory control, Chapter 9: Working capital management accounts receivable and payable, Chapter 10: Risk and the risk management process, Chapter 13: Professional and corporate ethics, Chapter 15: Social and environmental issues, Chapter 2: Development of corporate governance, Chapter 5: Relations with shareholders and disclosure, Chapter 6: Corporate governance approaches, Chapter 7: Corporate social responsibility and corporate governance, Chapter 1: The nature of strategic business analysis, Chapter 10: The role of information technology, Chapter 12: Project management I The business case, Chapter 13: Project management II Managing the project to its conclusion, Chapter 16: Strategic development and managing strategic change, Chapter 2: The environment and competitive forces, Chapter 3: Internal resources, capabilities and competences, Chapter 4: Stakeholders, governance and ethics, Chapter 5: Strategies for competitive advantage, Chapter 6: Other elements of strategic choice, Chapter 7: Methods of strategic development, Chapter 1: The role and responsibility of the financial manager, Chapter 11: Corporate failure and reconstruction, Chapter 13: Hedging foreign exchange risk, Chapter 15: The economic environment for multinationals, Chapter 16: Money markets and complex financial instruments, Chapter 17: Topical issues in financial management, Chapter 2: Investment appraisal methods incorporating the use of free cash flows, Chapter 3: The weighted average cost of capital (WACC), Chapter 4: Risk adjusted WACC and adjusted present value, Chapter 5: Capital structure (gearing) and financing, Chapter 7: International investment and financing decisions, Chapter 9: Strategic aspects of acquisitions, Chapter 1: Introduction to strategic management accounting, Chapter 10: Non-financial performance indicators and corporate failure, Chapter 11: The role of quality in performance management, Chapter 12: Current developments in performance management, Chapter 4: Changes in business structure and management accounting, Chapter 5: The impact of information technology, Chapter 6: Performance measurement systems and design and behavioural aspects, Chapter 7: Financial performance measures in the private sector, Chapter 8: Divisional performance appraisal and transfer pricing, Chapter 9: Performance management in not-for-profit organisations, Chapter 6: Order quantities and reorder levels, The%20Consolidated%20Statement%20of%20Financial%20Position, The qualitative characteristics of financial information, The Trial Balance and Errors in the Financial Reporting System, Auditors' Responsibilities Regarding Fraud, Auditors' Responsibilities Regarding Laws and Regulations, Budgeting in not-for-profit organisations, Corporate social responsibility and management systems, Development%20of%20corporate%20governance, Environmental Management Accounting (EMA), Fitzgerald and Moon's Building Block Model, International%20Federation%20of%20Accountants, Mintzberg - The ten skills of the manager, Professional advice and negligent misstatement, The%20Code%20of%20Ethics%20for%20Professional%20Accountants, Unfair Terms in Consumer Contract Regulations 1999, Using option pricing theory to value equity, Using probability theory to determine credit spreads, ACCA P5 - Advanced Performance Management, AAT- Prepare Financial Accounts for Sole Traders and Partnerships (FSTP) Exam, AAT-Control Accounts, Journals and the Banking System(CJBS) Exam, AAT-Processing Bookkeeping Transactions(PBKT) Exam, AAT- Internal Control and Accounting Systems (ISYS), Modification Through Additional Paragraphs, Chapter 10: Working capital management cash and funding strategies. 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