IAI Actuarial Core Principles · Business Finance · Construction and features of company accounts and reports
Which of the following is identified in the conceptual framework as a fundamental qualitative characteristic of useful financial information?
Faithful representation is a fundamental qualitative characteristic, alongside relevance. Comparability, verifiability, timeliness and understandability are enhancing characteristics, which add to the usefulness of information that is already relevant and faithfully represented.
- AComparability
- BVerifiability
- CTimeliness
- DFaithful representationCorrect
- Understandability
Explanation
The IASB conceptual framework names relevance and faithful representation as the two fundamental characteristics. Comparability, verifiability, timeliness and understandability are enhancing characteristics that improve usefulness only when the fundamental ones are present.
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