ACCA FA · Chapter 2 · Question 1 of 10
Which TWO qualitative characteristics are identified as fundamental in the IASB Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Relevance and faithful representation
Explanation
The Conceptual Framework identifies two fundamental qualitative characteristics: relevance and faithful representation. Comparability, verifiability, timeliness and understandability are enhancing characteristics, which improve the usefulness of information that is already relevant and faithfully represented.
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