1
Q
What does Faithful representation include in financial information
A
For information to be useful, it must faithfully represent the reported economic phenomena.
- Neutrality
- Completeness and
- Free from Error
2
Q
What does relevance include in financial information
A
Information is relevant if it is capable of making a difference in the decisions made by USERS.
- Predictive value
- Confirming Value and
- Material
3
Q
What is the use of the Statement of Financial Accounting Concept (SFAC)
A
They serve as the basis for all FASB pronouncements. SFAC are not GAAP, but they provide a basis for financial accounting concepts for business and non-business entities
4
Q
What are the Enhancing Qualitative characteristics of Financial information (ie compare and verify in time to understand)
A
- Comparability
- Verifiability
- Timeliness
- Understandability
