- 20 Marks
FA – May 2017 – L1 – SB – Q1 – Qualitative Characteristics of Useful Financial Information
Discuss the objectives and nature of general purpose financial reporting and define key accounting concepts.
Question
The IASB Conceptual Framework for Financial Reporting provides a conceptual underpinning of IFRS. The objective of general-purpose financial reporting forms the foundation of the conceptual framework.
Required:
a. Explain the objective of general purpose financial statements and the nature of the information in the statements. (6 Marks)
b. Define the following concepts and explain the significance of each on financial reporting.
i. Materiality (5 Marks)
ii. Consistency (5 Marks)
iii. Offsetting (4 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Consistency, Financial Reporting, IASB Conceptual Framework, Materiality, Offsetting
- Level: Level 1
