ACCA Applied Knowledge · Financial Accounting · Qualitative characteristics of useful financial information
Under the IFRS Conceptual Framework, which of the following is an enhancing qualitative characteristic of useful financial information?
Comparability is an enhancing qualitative characteristic. The Conceptual Framework lists comparability, verifiability, timeliness and understandability as enhancing, while relevance and faithful representation are fundamental, and materiality is an entity-specific aspect of relevance.
- AFaithful representation
- BRelevance
- CComparabilityCorrect
- DMateriality
Explanation
The enhancing characteristics are comparability, verifiability, timeliness and understandability. Relevance and faithful representation are the fundamental characteristics. Materiality is an aspect of relevance, not an enhancing characteristic.
Did you get it right without looking?
One question tells you little. A timed set on Qualitative characteristics of useful financial information shows your real accuracy, how long you take and where you lose marks.
More Qualitative characteristics of useful financial information questions
- A company's finance director proposes creating a general provision of $50,000 in a profitable year, for no identified obligation, so that pr…
- A company includes in its annual report a forecast of next year's profit, clearly described as an estimate, with the assumptions and the ran…
- Under the IASB Conceptual Framework, which statement about the cost constraint on useful financial reporting is correct?
- The 2018 IASB Conceptual Framework discusses prudence in relation to neutrality. Which statement is consistent with that Framework?
- Which of the following statements about the enhancing qualitative characteristics in the IFRS Conceptual Framework is correct?
- Lanto Co has a legal dispute where the outcome is uncertain. It omits all mention because disclosing it might worry users, even though users…