Accounting 3a/B Theory Assignment

Stage 3 Theory Assignment Accounting and finance 3A/B What argon the 4 qualitative characteristics that financial reports should fork over: List and cite each of these 4 qualities: Paragraph 24 of the AASB Framework identifies the quatern principal qualitative characteristics as: * relevancy * Reliability * Comparability, and * Understandability Relevance: Relevance is a disrupt of data that exists when study assists users to make economical decisions by part them evaluate past, present or future events or nourish or change past evaluations.* The relevance of information is unnatural by materiality. Reliability: Reliability is a quality of information that exists when information is free from signifi tail endt errors and bias and can be depended upon by users to present faithfully that which it either claims to hold tranquillize for or could reasonably be expected to represent. Comparability: The amount and display of i dentical transactions, in the accounting reports of a business, should be consistent over time. Understandability: Understandability exists when the users of financial statements ar able to comprehend the meaning of these statements. Is it possible for information to be genuine precisely not relevant?

Provide an case to illustrate your response. Yes, it is possible for information to be authoritative unless not relevant. Some information may be reliable such as the historical cost of an asset 20 years ago, but obviously it wont be relevant because there is more recent information from 20 years ago. Converse ly, information, such as forecasts of future! profits, may be relevant but cannot be measured with an acceptable decimal point of reliability to be included in general economic consumption financial reports. What argon Accounting Standards? The AASB accounting standards are a set of rules that companies listed on the Australian Securities Exchange and more or less some other organisations MUST follow when they prepare accounting...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com

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