Accounting 3a/B Theory Assignment

Stage 3 Theory Assignment Accounting and finance 3A/B What argon the 4 qualitative characteristics that financial reports should invite: List and cite each of these 4 qualities: Paragraph 24 of the AASB Framework identifies the quatern principal qualitative characteristics as: * relevance * Reliability * Comparability, and * Understandability Relevance: Relevance is a division of data that exists when discipline assists users to make frugal decisions by dowry them evaluate past, present or future events or fix or change past evaluations.* The relevance of information is bear on by materiality. Reliability: Reliability is a quality of information that exists when information is free from signifi tail endt errors and bias and can be depended upon by users to present faithfully that which it either claims to hold simmer down for or could reasonably be expected to represent. Comparability: The mensuration and display of id entical transactions, in the accounting reports of a business, should be consistent over time. Understandability: Understandability exists when the users of financial statements be able to comprehend the meaning of these statements. Is it possible for information to be genuine precisely not relevant?

Provide an instance to illustrate your response. Yes, it is possible for information to be tested plainly not relevant. Some information may be reliable such as the historical cost of an asset 20 years ago, but obviously it wont be relevant because there is more recent information from 20 years ago. Co nversely, information, such as forecasts of ! future profits, may be relevant but cannot be measured with an acceptable stage of reliability to be included in general economic consumption financial reports. What argon Accounting Standards? The AASB accounting standards are a set of rules that companies listed on the Australian Securities Exchange and more or less some other organisations MUST follow when they prepare accounting...If you unavoidableness to get a full essay, order it on our website: BestEssayCheap.com

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