Scribd
Upload
48 views2 pages

FSA Notes

FSA notes

Uploaded by

Sundaram
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
48 views2 pages

FSA Notes

FSA notes

Uploaded by

Sundaram
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Introduction

QC-1

QC-2

QC-3
Qualitative characteristics of useful financial information

QC-4
Fundamental qualitative characteristics

QC-5
Relevance

QC-6

QC-7

QC-8

QC-9

QC-10
Materiality

QC-11
Faithful representation
QC-12
QC-13
Introduction

identify the types of information that are likely to be most useful to the
existing and potential investors, lenders and other creditors for making
decisions about the reporting entity on the basis of information in its financial
report

Financial reports provide information about the reporting entity’s economic


resources, claims against the reporting entity and the effects of transactions and
other events and conditions that change those resources and claims

The qualitative characteristics of useful financial information81 apply to


financial information provided in financial statements, as well as to financial
information provided in other ways.
Qualitative characteristics of useful financial information

If financial information is to be useful, it must be relevant and faithfully


represent what it purports to represent. The usefulness of financial information
is enhanced if it is comparable, verifiable, timely and understandable.
Fundamental qualitative characteristics
The fundamental qualitative characteristics are relevance and faithful
representation.

Relevant financial information is capable of making a difference in the decisions


made by users.
Financial information is capable of making a difference in decisions if it has
predictive value, confirmatory value or both.
Financial information has predictive value if it can be used as an input to
processes employed by users to predict future outcomes.
Financial information has confirmatory value if it provides feedback about
(confirms or changes) previous evaluations.

The predictive value and confirmatory value of financial information are


interrelated. Information that has predictive value often also has confirmatory
value
Materiality

Information is material if omitting it or misstating it could influence decisions


that users make on the basis of financial information about a specific reporting
entity.
Faithful representation

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy