CMA Intermediate · Corporate Accounting and Auditing · Conceptual Framework
Which of the following is an enhancing qualitative characteristic of useful financial information under the Conceptual Framework under Ind AS?
Verifiability is an enhancing qualitative characteristic. The Conceptual Framework says usefulness is enhanced if information is comparable, verifiable, timely and understandable, whereas relevance and faithful representation are the fundamental characteristics that information must possess in the first place.
- ARelevance
- BFaithful representation
- CVerifiabilityCorrect
- DMateriality as a separate fundamental characteristic
Explanation
Paragraph 2.4 lists comparability, verifiability, timeliness and understandability as characteristics that enhance usefulness. Relevance and faithful representation are the fundamental ones, so they are not enhancing characteristics.
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