ACCA FR · Chapter 1 · Question 1 of 10
According to the IASB Conceptual Framework for Financial Reporting, which are the two fundamental qualitative characteristics of useful financial information?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Relevance and faithful representation
Explanation
The Conceptual Framework identifies relevance and faithful representation as the fundamental qualitative characteristics. Comparability, verifiability, timeliness and understandability are enhancing characteristics. 'Reliability' was replaced by faithful representation and is no longer the term used.
More The conceptual framework and IAS 8 MCQs
- Q3Which of the following is NOT one of the enhancing qualitative characteristics in the IASB Conceptual Framework?
- Q4The Conceptual Framework describes several measurement bases. Which of the following is NOT a current value measurement basis?
- Q5On 1 January Kestrel Co sold inventory with a carrying amount of $1.5 million to a bank for $2 million. Kestrel Co continues to store the…
- Q6Which of the following is a change in accounting estimate rather than a change in accounting policy under IAS 8?
- Q7In preparing its financial statements for the year ended 31 December 20X5, Marlin Co discovered that closing inventory at 31 December 20X4…