CFAS

Question 1

Who will prevail? PFRS or CF?

Answer 1

PFRS (CF is not a PFRS)

Question 2

Fundamental Qualitative Characteristics is composed of …

Answer 2

• Relevance
• Faithful Representation

Question 3

Enhancing Qualitative Characteristics is composed of …

VCUT

Answer 3

• Verifiability
• Comparability
• Understandability
• Timeliness

Question 4

Ingredients of Relevance

Answer 4

1. Predictive Value
2. Confirmatory Value

Question 5

Ingredients of Faithful Representation

FNC

Answer 5

1. Free from Error
2. Neutrality
3. Completeness

Question 6

3 Applications of Matching Principle
1. Cause and Effect
2. Systematic and Rational
3. Immediate Recognition

How do they differ?

Answer 6

1. Cause and Effect = expense is recognized when revenue is recognized
2. Systematic and Rational = depreciation
3. Immediate Recognition = OPEX