Term
|
Definition
To give "coherence"
To increase "Understandibility" and "Confidence"
To enhance "Comparability" among companies financial statements. |
|
|
Term
|
Definition
| Chapter 1, The objective of General purpose financial reporting, and chapter 2, Qualitative characteristics of useful financial information" Replaces SFAC No.1 and No.2 |
|
|
Term
|
Definition
1. Relevance
2. Faithful Representation |
|
|
Term
|
Definition
| Information that is capable of making a difference in a decision. |
|
|
Term
| What are the qualities of RELEVANCE? |
|
Definition
1. Predictive value
2. Confirmatory value
3. Materiality |
|
|
Term
|
Definition
| Information can help users form expectations about the future. |
|
|
Term
|
Definition
| Information validates or refutes expectations based on previous evaluations. |
|
|
Term
|
Definition
| Information is "____" if material if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information. |
|
|
Term
|
Definition
| Numbers and descriptions match what really happened or existed. |
|
|
Term
| What are the qualities of FAITHFUL REPRESENTATION? |
|
Definition
1. Completeness
2. Neutrality
3. Free from error |
|
|
Term
|
Definition
| All necessary information is provided |
|
|
Term
|
Definition
| The information is unbiased |
|
|
Term
|
Definition
| The information is accurate |
|
|
