Answer: B These are comparability, verifiability, timeliness and understandability, which enrich the usefulness of information that is relevant and faithfully represented. Qualitative Characteristics of Accounting Information. Each one allows a company to prepare financial information that is consistent to … Enhancing qualitative characteristics include comparability, verifiability, timeliness and understandability. Enhancing qualitative characteristics of accounting information include: A. Relevance and comparability. Accounting information qualitative characteristics are summarized below: In addition to the aforementioned characteristics (i.e., relevance, reliability, comparability, and consistency), the following qualities of accounting information affect its usefulness: understandability, materiality, and conservatism. through an audit) this provides assurance to the users that it is both credible and reliable. If assets are valued at cost in some periods, and at replacement cost … The enhancing qualitative characteristics on the other hand include understandability, comparability, verifiability and timeliness). C) Faithful representation and relevance. Verifiability – if information can be verified (e.g. Comparability. Enhancing Qualitative Characteristics distinguish more useful information from less useful information. Qualitative Characteristics of Accounting Information. Qualitative Characteristics of Accounting Information There are some qualities of accounting that make it useful for both external and internal users of accounting. Applying the enhancing qualitative characteristics. two fundamental qualitative characteristics relevance and faithful representation; four enhancing qualitative characteristics: comparability, verifiability, timeliness and understandability. Enhancing qualitative characteristics of accounting information include: A) Relevance and comparability. Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Enhancing qualitative characteristics include comparability, verifiability, timeliness, and understandability. Enhancing Characteristics of financial statements include: Comparability: Accounting policies are kept consistent from year to year, and information is presented in a manner that makes it easy for users to compare year-on-year info. Enhancing qualitative characteristics of accounting information include: … d. Faithful representation and consistency. They help decide between two equally relevant and true and faithful accounting choices for a single transaction. It is also highlighted as one of the qualitative characteristics of accounting information… They enhance the fundamental qualitative characteristics by distinguishing more useful information from less-useful information. The qualitative characteristics of financial information can be categorized as fundamental (relevance and faithful representation) or enhancing (comparability, verifiability, timeliness and understandability) based on how they influence the usefulness of financial information. 【单选题】The Conceptual Framework identifies four enhancing qualitative characteristics of financial information. The enhancing qualitative characteristics of financial information include: Relevance and faithful representation: Comparability and … Our findings demonstrate that ...2007 Accounting Information Qualitative Characteristics Gap: Evidence from Jordan Ahmad N. Obaidat Tafila Technical University, Tafila, Jordan [Abstract] The general objective of financial reporting is to provide useful information to present and potential investors, creditors, and others to help them make investment, … Concepts Statements are intended to set forth objectives and fundamental B) Comparability and consistency. 【单选题】Historical cost accounting remains in use because of its practical advantages. We adopt a 2×2 mixed design in conjunction with ANOVA and SEM to analyze the relationships among the qualitative characteristics of accounting information. - 15094247 As the Board and the IASB complete additional phases of their joint project, new chapters will be added to this Concepts Statement, and other Concepts Statements will be superseded. [Question] 151. Enhancing qualitative characteristics of accounting information include: Multiple Choice 1. FASB's qualitative characteristics of accounting information include all of the following: relevance, faithful representation, comparability, and understandability. Enhancing Qualitative Characteristics These qualities are outlined in Chapter 3 of the Conceptual Framework for Financial Reporting, approved by the International Accounting Standards Board (IASB). Relevance: The information provided in the financial statements must be relevant to the needs of its users. Relevance and comparability. For example, accounting information would be biased if the income statement was prepared so that it resulted in a high enough level of profit that the management team received … Data Analysis and Discussion of Findings This fiinding reveals that top management support, culture, ethical leadership, open communication channels, and ethics training are … c. Faithful representation and relevance. Users can identify similarities and differences Although the main statutory recipients of these statements are ‘shareholders’, but there are many other stakeholders that rely on these statements during their decision making process e.g. Although consistency in the use of accounting principles from one accounting period to another is a desirable quality, but it, if pushed too far, will prove a bottleneck for bringing about improvements in accounting policies, practices, and procedures. C. Understandability and relevance. 2. Fundamental qualitative characteristics of accounting information are: a. Relevance and comparability. 2. The enhancing qualitative characteristics of financial information include: Which of the following is not a contributory factor towards faithful representation? B. Comparability and timeliness. Enhancing qualitative characteristics of accounting information include each of the following except: a. … Qualitative characteristics that pertain to accounting or financial information represent the conceptual framework of data. Qualitative characteristics are the qualities or attributes that make financial accounting information useful to the users. Enhancing qualitative characteristics of accounting information include each of the following except: Multiple Choice Materiality Timeliness Comparability. Understandability: Information should be presented in a way such that users with reasonable knowledge of accounting … The crux of prudence is prepares of accounting information should exercise prudent views when making judgments about uncertain items such as provisions for doubtful debts, asset lives or the number of warranty claims that might occur. 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