Accounting 3a/B Theory Assignment

Stage 3 Theory Assignment Accounting and pay 3A/B What argon the 4 qualitative characteristics that financial reports should give way: List and cite each of these 4 qualities: Paragraph 24 of the AASB Framework identifies the quatern principal qualitative characteristics as: * relevance * Reliability * Comparability, and * Understandability Relevance: Relevance is a quality of data that exists when discipline assists users to make economic decisions by luck them evaluate past, present or future events or establish 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 unflurried for or could reasonably be expected to represent. Comparability: The measuring and display o f identical 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 event to illustrate your response. Yes, it is possible for information to be true solely 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. Conve rsely, information, such as forecasts of fut! ure profits, may be relevant but cannot be measured with an acceptable head of reliability to be included in general economic consumption financial reports. What be Accounting Standards? The AASB accounting standards are a set of rules that companies listed on the Australian Securities Exchange and close to some other organisations MUST follow when they prepare accounting...If you compliments to get a full essay, order it on our website: BestEssayCheap.com

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