Accounting 3a/B Theory Assignment

Stage 3 Theory Assignment Accounting and pay 3A/B What argon the 4 qualitative characteristics that financial reports should pass on: 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 fail of data that exists when knowledge assists users to make economic decisions by luck them evaluate past, present or future events or assert or change past evaluations.* The relevance of information is change 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 smooth for or could reasonably be expected to represent. Comparability: The beat and display of identical transacti ons, 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 display case to illustrate your response. Yes, it is possible for information to be time-tested merely 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. Conversely , information, such as forecasts of future p! rofits, may be relevant but cannot be measured with an acceptable degree of reliability to be included in general economic consumption financial reports. What are Accounting Standards? The AASB accounting standards are a set of rules that companies listed on the Australian Securities Exchange and some(prenominal) some other organisations MUST follow when they prepare accounting...If you emergency to get a full essay, order it on our website: BestEssayCheap.com

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