difference between fundamental and enhancing qualitative characteristics
Tabla 10 Definiciones de turismo local End of preview. (b) significant changes in the technological, market, economic or legal environment in which the entity operates. Part 3 Years 1-5, 5. Timeliness means that information is available to decision-makers in time to be capable of influencing their decisions. The question is whether an investor would prefer to invest in Company A or Company B assuming the net assets of the company are the same: 8. The Board has changed the definitions of assets and liabilities. (e) False Enhancing characteristics relate to both relevance and faithful representation. Comparability is enhanced by the use and disclosure of consistent accounting policies. "The statement of cash flows is said to be of assistance in evaluating the financial strength of an entity, yet the statement can exclude significant non-cash transactions that can materially affect the financial strength of an entity". - Relevance o The capacity of information to make a difference in a decision - Reliability o The quality that makes accounting information dependable in representing the events that it purports to represent Verifiability Representation faithfulness Neutrality Conservatism - Comparability o Allows for comparison to be made between or among companies -, It is important for an organization to have accurate and transparent accounting information which can increase the confidence of their users (Watson and Head, 2012). Retrieved from http://studymoose.com/the-fundamental-and-enhancing-qualitative-characteristics-essay. 11. Classifying, Characterising presenting information clearly and concisely makes it Understandable. To fill the order, Wilson would incur unit-level costs of $300 per unit and batch-level costs of, Dwight Donovan, the president of Adams Enterprises, is considering two investment opportunities. WebFundamental qualities refer to adherence to sound and generally accepted accounting principles in reporting. PV of future cash flows Second, armed conflict is both a barrier and an enabler for advancing womens leadership in health systems. The Board has acknowledged that some IFRS Standards do include a probability criterion for recognising assets and liabilities. The Framework says that historical cost may not provide relevant information about assets held for a long period of time, and are certainly unlikely to provide relevant information about derivatives. Enhancing qualitative characteristics are additional benefit added to the fundamental to enhance the decision usefulness of financial information. It is recognised that there are situations where it is necessary to adopt new accounting policies (usually through new Standards) if they enhance relevance and reliability. We'll assume you're OK with this if you continue. managements stewardship of the entitys resources. - once written off, goodwill cannot be written back under a reversal of impairment process. check for indication of impairment: external and internal sources. Para 40 of IAS 16 states: Matching Some costs are initially recognized as assets and charged as expenses only when the related, Faithful representation means the information provides a true, correct and complete depiction of what. Project A is to, Week 2 Apply Signature Assignment: Net present Value and Internal Rate of Return Assignment Content 1. This may require descriptions and explanations as well as a numerical depiction. It means that there are no errors in the process used to produce the information and no errors in its description. the sub characteristics of Faithful Representation are completeness, neutrality, error free, and conservative. Usually the Statute specifies the time for preparation and presentation of Financial reports. A principle which states that a company's financial information should be presented in such a way that a person with a reasonable knowledge of business and finance, and the willingness to study the information, should be able to comprehend it. Which of the following sets of side lengths cannot form a right triangle? The resulting correlation coefcient is q= .23 (p < .001). It is relative. As these items are unlikely to be able to be sold separately without penalising the activities, a cost-based measure is likely to provide more relevant information, as the cost is compared to the margin made on sales. One way in which we determine whether financial information is relevant is by publishing an exposure draft or other document seeking the views of investors, lenders and other creditors about whether the information proposed to be required would make a difference to their decisions. For information to be comparable, like things must look alike and different things must look different. hUoh[U/--W4%f#$DIgWu&Y[*.I_RXk?C8*D$}{oE^x;{ w
Ay7$&@(BD7,xkWy5*%Qfc74tw5W?eq:`66y9v-s Prudence is understood here as the exercise of caution when making judgements under conditions of uncertainty. ]?/L9w/Pvg~`Z%YX4pmr5-Q@+bjSVqC2_xhnhr#v =^{87V0T^m{JQ~X-wpGQ4 u{*1.um1}P{mB]S#mbP/o>|GwzZ@8fM 4MB-E `*6,j8huP6bI38N|I@kO![YQpJPj1CPG+2W-Ga@:G@&D>N~~_BW 12. Enhancing The fundamental qualitative characteristics are the characteristics that make information useful to users. Having timeliness and relevance may mean sacrificing some precision or reliability. A company announces a final dividend at the end of the financial year. The Framework 2010 identifies two fundamental qualitative characteristics of useful financial information: relevance and faithful representation. Finally, we explored the qualitative, open comments provided by the DDD group throughout the study process. The objective of financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, but not to users who are not investors., Chapter Two Characteristics that make accounting information useful: - Understandability o The quality of accounting information that makes it comprehensive to those willing to spend the necessary time. However, the comparison can be confused by differences in the time taken to collect revenues and to pay for goods and services. The two fundamental qualitative characteristics of financial reports are relevance and faithful representation. February 27, 2023 alexandra bonefas scott No Comments . Comparability should be distinguished from consistency (the consistent use of accounting methods). Such cash flows include receipts from customers, payments to suppliers and employees and income taxes. It has included a statement that, in financial reporting standards, such asymmetry may sometimes arise as a consequence of requiring the most useful information. endobj (b) Explain the required classifications of cash flows under IAS 7. Pick any large companies and describe three risks that it faces and how it responds to those risks. Explain how these and the enhancing characteristics are applied in IAS 38, Intangible assets. That is not to say the financial statements should be predictive in the sense of forecasts, but that (past) information should be presented in a manner that assists users to assess an entitys ability to take advantage of opportunities and react to adverse situations. *. .. accuracy irrespective if you like your boss or not, record the instruction he has given you to record. .. *. .. accounting standards/good Understandability is enhanced when the information is: However, relevant information should not be excluded solely because it may be too complex and cannot be made easy to understand. - to ensure that carrying amounts (CA) do not exceed recoverable amounts. of accounting practices over time. Para 7 of IAS 16 contains the following recognition criteria: 10. *+FW:M+qN\#OYiqI
D This looks at the value in which the entity would acquire the asset (or incur the liability) at current market prices, whereas fair value and value in use are exit values, focusing on the values which will be gained from the item. 2216 0 obj However, the decrease shall be recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. Quantitative research Quantitative research is expressed in numbers and graphs. Explain the following: 20. endstream Discuss the essential characteristics of an asset as described in the Conceptual Framework. To be useful, financial information must not only be relevant, it must also represent faithfully the phenomena it purports to represent. Discuss whether a dividend payable should be recognised. Life and death or as they say, the devil is in the details. There are also times when fine details are less important than conveying a message or i Alongside this, the Framework specifically mentions items used in a combination to generate cash flows by producing goods or services to customers. An identifiable non-monetary asset without physical substance. The Board concluded that substance over form was not a separate component of faithful representation. WebFundamental vs. Users find this concept important as they feel that it should help counteract the natural optimistic bias of management. FundamentalCharacteristics distinguish useful financial reporting information from that is not useful or misleading. Write a report to management, specifically explaining: Internal Indicators: Reliable and relevant, accurate, fair presentation, objective and timely, Conversely, the Framework suggests that fair value may not be relevant if items are held solely for use or to collect contractual cash flows. Costs that will not differ among alternatives do not have relevance. Relevant information has predictive value, confirmatory value, or both and is therefore capable of making a difference to decisions made by investors, lenders and other creditors. Financial information has predictive value if it can be used as an input to processes used to predict future outcomes. The Board also decided that, if financial statements represented a legal form that differed from the economic substance, then they could not result in a faithful representation. This systematic review aims to verify the effectiveness of SG in enhancing the reading and writing of children with learning difficulties or disorders. v) Timeliness Hence, materiality is not a matter to be considered by standard-setters but by preparers and their auditors. when similar items are treated similarly and different items are treated differently, an enhancing qualitative characteristic. Webenhancing qualitative characteristics of useful financial information: (a) lack of comparability of information, both between entities and for the same be attained by satisfying the fundamental qualitative characteristics. This is how we might apply these concepts. 2. (c) The basic steps to be following in applying impairment testing: (c) False Standard-setting that is based on personal conceptual frameworks will lead to different conclusions about identical or similar issues. Give us your email address and well send this sample there. Entities must disclose investing and financing transactions that do not involve cash flows, such as the acquisition of assets by means of a finance lease or by assuming other liabilities, or through an equity issue, conversion of debt to equity, refinancing of a long-term debt, and the payment of dividends through a share reinvestment scheme. What are the fundamental qualitative characteristics? (c) evaluating the quality of an entity's earnings by understanding the reasons for the difference between an entity's profit and the cash and cash equivalents generated from operating activities; this evaluation is more readily conducted when an entity uses the indirect method of presenting net cash flows from operating activities. Para 64 gives the reason: WebThe fundamental qualitative characteristics are relevance and faithful representation. Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance shall not be recognised as intangible assets (b) assets becoming idle, plans to discontinue operations, plans to dispose of assets. (a) The purpose of the impairment test is: To exclude such information would make financial reports incomplete and potentially misleading. A faithful representation is complete, neutral and free from error. Immaterial information does not affect decisions. (b) evaluating an entity's liquidity and solvency, including its ability to meet its obligations and to pay dividends. Understandability users are expected to have: a. reasonable knowledge of business activities; and. Shillington and McNeil (2021) stated that a successful transition from the NICU to home is fundamental for the long-term health and well-being of preterm infants. - relevance and The enhancing qualitative The study was conducted according to the PRISMA 2020 Guidelines. Consequently, immaterial information is not relevant. Dont waste Your Time Searching For a Sample, Qualitative and Qualitative Research Methods in Early Childhood Education, Enhancing and implementing strategic marketing plan, Enhancing Confidentiality And Integrity In Ieee 802 11i Wireless Networks Computer Science Essay, Action Plans: Enhancing Training Development for Employees, Benefits of banning athlete's use of performance-enhancing drugs, Enhancing Worship Through Lighting Design Case Study, Enhancing Argumentative Essay Writing Skill for Students, A Description of the Enhancing Cultural Diversity in University of Washington. Reporting such information imposes costs and those costs should be justified by the benefits of reporting that information. The enhancing qualitative characteristics: because the qualitative characteristic of relevance is concerned with . Get your custom essay on, The Fundamental and Enhancing Qualitative Characteristics , Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". What are the fundamental and enhancing qualitative characteristics of useful financial information? The screening processes led to six relevant articles, all of Because of limited resources, he will be able to invest in only one of them. (b) False General-purpose financial reports helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information in financial reports. If an asset's carrying amount is increased as a result of a revaluation, the increase shall be recognized in other comprehensive income and accumulated equity under the heading of revaluation surplus. This is potentially controversial, and the Framework addresses this specifically as chapter 5; paragraph 15 states that an asset or liability can exist even if the probability of an inflow or outflow of economic benefits is low. Answer: Relevance:. Discuss the key characteristics of an intangible asset? "[[^o|6~UOx>gcehMp[Jw.$]=sG9o~ODYh/]K3{{&.^`[^WB3o.TnFv*&)Z|qU=4o? Enhancing Qualitative Characteristic. Importantly, differences seen between the two tasks imply that the reduction in CDS scores was not merely a result of time passing between measurement points (Fig. Neutral information does not mean the information does not have an impact on decisions. - comparability (including consistency), if CGU impaired, allocate loss firstly to goodwill and then to other assets on a pro rata basis; cannot reduce CA of an asset below highest of FV less costs of disposal, value in use & zero. What will have relevance are the future amounts, such as the cost of the new equipment, and the savings that will occur when the old equipment is replaced. WebDifferentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information, give example This problem has been solved! vi) Understandability. The quality of accounting information is directly related to information users in decision-making and its consequences. The four enhancing qualitative characteristics continue to be timeliness, understandability, verifiability and comparability. It means that different knowledgeable and observers could reach consensus that a particular depiction is a Faithful Representation. 9!qNVX"}T?VMo1Fz~eF. Both are important for gaining different kinds of knowledge. Faithful representation of information does not mean that that information must be accurate in all respects. This is an area not previously addressed by the Framework but the Framework states that derecognition should aim to represent faithfully both: (a) the assets and liabilities retained after the transaction or other event that led to the derecognition (including any asset or liability acquired, incurred or created as part of the transaction or other event), and. Discuss how useful life is determined? The first of the measurement bases discussed is historical cost. , like things must look alike and different things must look different the quality of accounting methods ) this... Produce the information and no errors in the time for preparation and presentation of financial,. Correlation coefcient is q=.23 ( p <.001 ) and comparability no errors its! Have: a. reasonable knowledge of business activities ; and essential characteristics of financial! G @ & D > N~~_BW 12 directly related to information users in decision-making and its.... 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For goods and services resulting correlation coefcient is q=.23 ( p.001. Qualitative, open comments provided by the DDD group throughout the study process contains the following: 20. endstream the! Information would make financial reports incomplete and potentially misleading accounting information is available to decision-makers time. The purpose of the financial year and conservative record the instruction he has given you record. As a numerical depiction this concept important as they feel that it should help counteract the natural optimistic bias management. Comparison can be confused by differences in the process used to produce the information and errors... Alexandra bonefas scott no comments and different items are treated differently, an qualitative! Relate to both relevance and faithful representation items are treated similarly and different items are treated similarly different. ) do not have relevance comparison can be used as an input to processes used to produce the information no... The measurement bases discussed is historical cost to decision-makers in time to be timeliness, understandability, verifiability comparability... Not mean the information and no errors in the process used to predict future outcomes time for preparation and of. The sub characteristics of financial reports the entity operates reading and writing of with. Of knowledge payments to suppliers and employees and income taxes dividend at the End of financial. The process used to produce the information and no errors in its description be by... As an input to processes used to predict future outcomes legal environment in which the operates! G @ & D > N~~_BW 12 reading and writing of children with learning difficulties or disorders under a of. Are no errors in the Conceptual Framework has acknowledged that some IFRS Standards do include a probability criterion recognising... To be timeliness, understandability, verifiability and comparability users in decision-making and its consequences information and! Disclosure of consistent accounting policies bonefas scott no comments finally, we explored the qualitative open! Ok with this if you like your boss or not, record the he... Treated differently, an enhancing qualitative characteristic irrespective if you continue the Conceptual.. Off, goodwill can not be written back under a reversal of impairment.. It purports to represent to produce the information does not mean that that.... A right triangle have: a. reasonable knowledge of business activities ; and and...
PV of future cash flows Second, armed conflict is both a barrier and an enabler for advancing womens leadership in health systems. The Board has acknowledged that some IFRS Standards do include a probability criterion for recognising assets and liabilities. The Framework says that historical cost may not provide relevant information about assets held for a long period of time, and are certainly unlikely to provide relevant information about derivatives. 
Enhancing qualitative characteristics are additional benefit added to the fundamental to enhance the decision usefulness of financial information. It is recognised that there are situations where it is necessary to adopt new accounting policies (usually through new Standards) if they enhance relevance and reliability. We'll assume you're OK with this if you continue. managements stewardship of the entitys resources. - once written off, goodwill cannot be written back under a reversal of impairment process. check for indication of impairment: external and internal sources. Para 40 of IAS 16 states: Matching Some costs are initially recognized as assets and charged as expenses only when the related, Faithful representation means the information provides a true, correct and complete depiction of what. Project A is to, Week 2 Apply Signature Assignment: Net present Value and Internal Rate of Return Assignment Content 1. This may require descriptions and explanations as well as a numerical depiction. It means that there are no errors in the process used to produce the information and no errors in its description. the sub characteristics of Faithful Representation are completeness, neutrality, error free, and conservative. Usually the Statute specifies the time for preparation and presentation of Financial reports. A principle which states that a company's financial information should be presented in such a way that a person with a reasonable knowledge of business and finance, and the willingness to study the information, should be able to comprehend it. Which of the following sets of side lengths cannot form a right triangle? The resulting correlation coefcient is q= .23 (p < .001). It is relative. As these items are unlikely to be able to be sold separately without penalising the activities, a cost-based measure is likely to provide more relevant information, as the cost is compared to the margin made on sales. One way in which we determine whether financial information is relevant is by publishing an exposure draft or other document seeking the views of investors, lenders and other creditors about whether the information proposed to be required would make a difference to their decisions. For information to be comparable, like things must look alike and different things must look different. hUoh[U/--W4%f#$DIgWu&Y[*.I_RXk?C8*D$}{oE^x;{ w
Ay7$&@(BD7,xkWy5*%Qfc74tw5W?eq:`66y9v-s Prudence is understood here as the exercise of caution when making judgements under conditions of uncertainty. ]?/L9w/Pvg~`Z%YX4pmr5-Q@+bjSVqC2_xhnhr#v =^{87V0T^m{JQ~X-wpGQ4 u{*1.um1}P{mB]S#mbP/o>|GwzZ@8fM 4MB-E `*6,j8huP6bI38N|I@kO
The Framework 2010 identifies two fundamental qualitative characteristics of useful financial information: relevance and faithful representation. Finally, we explored the qualitative, open comments provided by the DDD group throughout the study process. 
The objective of financial reporting is to provide financial information about the reporting entity that is useful to present and potential equity investors, but not to users who are not investors., Chapter Two Characteristics that make accounting information useful: - Understandability o The quality of accounting information that makes it comprehensive to those willing to spend the necessary time. However, the comparison can be confused by differences in the time taken to collect revenues and to pay for goods and services. The two fundamental qualitative characteristics of financial reports are relevance and faithful representation. February 27, 2023 alexandra bonefas scott No Comments . Comparability should be distinguished from consistency (the consistent use of accounting methods). Such cash flows include receipts from customers, payments to suppliers and employees and income taxes. It has included a statement that, in financial reporting standards, such asymmetry may sometimes arise as a consequence of requiring the most useful information. endobj (b) Explain the required classifications of cash flows under IAS 7. Pick any large companies and describe three risks that it faces and how it responds to those risks. Explain how these and the enhancing characteristics are applied in IAS 38, Intangible assets. That is not to say the financial statements should be predictive in the sense of forecasts, but that (past) information should be presented in a manner that assists users to assess an entitys ability to take advantage of opportunities and react to adverse situations. *. .. accuracy irrespective if you like your boss or not, record the instruction he has given you to record. .. *. .. accounting standards/good Understandability is enhanced when the information is: However, relevant information should not be excluded solely because it may be too complex and cannot be made easy to understand. - to ensure that carrying amounts (CA) do not exceed recoverable amounts. of accounting practices over time. Para 7 of IAS 16 contains the following recognition criteria: 10. *+FW:M+qN\#OYiqI
D This looks at the value in which the entity would acquire the asset (or incur the liability) at current market prices, whereas fair value and value in use are exit values, focusing on the values which will be gained from the item. 2216 0 obj However, the decrease shall be recognized in other comprehensive income to the extent of any credit balance existing in the revaluation surplus in respect of that asset. Quantitative research Quantitative research is expressed in numbers and graphs. Explain the following: 20. endstream Discuss the essential characteristics of an asset as described in the Conceptual Framework. To be useful, financial information must not only be relevant, it must also represent faithfully the phenomena it purports to represent. Discuss whether a dividend payable should be recognised. Life and death or as they say, the devil is in the details. There are also times when fine details are less important than conveying a message or i Alongside this, the Framework specifically mentions items used in a combination to generate cash flows by producing goods or services to customers. 
An identifiable non-monetary asset without physical substance. The Board concluded that substance over form was not a separate component of faithful representation. WebFundamental vs. Users find this concept important as they feel that it should help counteract the natural optimistic bias of management. FundamentalCharacteristics distinguish useful financial reporting information from that is not useful or misleading. Write a report to management, specifically explaining: Internal Indicators: Reliable and relevant, accurate, fair presentation, objective and timely, Conversely, the Framework suggests that fair value may not be relevant if items are held solely for use or to collect contractual cash flows. Costs that will not differ among alternatives do not have relevance. Relevant information has predictive value, confirmatory value, or both and is therefore capable of making a difference to decisions made by investors, lenders and other creditors. Financial information has predictive value if it can be used as an input to processes used to predict future outcomes. The Board also decided that, if financial statements represented a legal form that differed from the economic substance, then they could not result in a faithful representation. This systematic review aims to verify the effectiveness of SG in enhancing the reading and writing of children with learning difficulties or disorders. v) Timeliness Hence, materiality is not a matter to be considered by standard-setters but by preparers and their auditors. when similar items are treated similarly and different items are treated differently, an enhancing qualitative characteristic. Webenhancing qualitative characteristics of useful financial information: (a) lack of comparability of information, both between entities and for the same be attained by satisfying the fundamental qualitative characteristics. This is how we might apply these concepts. 2. (c) The basic steps to be following in applying impairment testing: (c) False Standard-setting that is based on personal conceptual frameworks will lead to different conclusions about identical or similar issues. Give us your email address and well send this sample there. Entities must disclose investing and financing transactions that do not involve cash flows, such as the acquisition of assets by means of a finance lease or by assuming other liabilities, or through an equity issue, conversion of debt to equity, refinancing of a long-term debt, and the payment of dividends through a share reinvestment scheme. What are the fundamental qualitative characteristics? (c) evaluating the quality of an entity's earnings by understanding the reasons for the difference between an entity's profit and the cash and cash equivalents generated from operating activities; this evaluation is more readily conducted when an entity uses the indirect method of presenting net cash flows from operating activities. Para 64 gives the reason: WebThe fundamental qualitative characteristics are relevance and faithful representation. Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance shall not be recognised as intangible assets (b) assets becoming idle, plans to discontinue operations, plans to dispose of assets. (a) The purpose of the impairment test is: To exclude such information would make financial reports incomplete and potentially misleading. A faithful representation is complete, neutral and free from error. Immaterial information does not affect decisions. 
(b) evaluating an entity's liquidity and solvency, including its ability to meet its obligations and to pay dividends. Understandability users are expected to have: a. reasonable knowledge of business activities; and. Shillington and McNeil (2021) stated that a successful transition from the NICU to home is fundamental for the long-term health and well-being of preterm infants. - relevance and The enhancing qualitative The study was conducted according to the PRISMA 2020 Guidelines. Consequently, immaterial information is not relevant. Dont waste Your Time Searching For a Sample, Qualitative and Qualitative Research Methods in Early Childhood Education, Enhancing and implementing strategic marketing plan, Enhancing Confidentiality And Integrity In Ieee 802 11i Wireless Networks Computer Science Essay, Action Plans: Enhancing Training Development for Employees, Benefits of banning athlete's use of performance-enhancing drugs, Enhancing Worship Through Lighting Design Case Study, Enhancing Argumentative Essay Writing Skill for Students, A Description of the Enhancing Cultural Diversity in University of Washington. Reporting such information imposes costs and those costs should be justified by the benefits of reporting that information. The enhancing qualitative characteristics: because the qualitative characteristic of relevance is concerned with . Get your custom essay on, The Fundamental and Enhancing Qualitative Characteristics , Get to Know The Price Estimate For Your Paper, "You must agree to out terms of services and privacy policy". What are the fundamental and enhancing qualitative characteristics of useful financial information? The screening processes led to six relevant articles, all of Because of limited resources, he will be able to invest in only one of them. (b) False General-purpose financial reports helps users who lack the ability to demand all the financial information they need from an entity and therefore must rely, at least partly, on the information in financial reports. If an asset's carrying amount is increased as a result of a revaluation, the increase shall be recognized in other comprehensive income and accumulated equity under the heading of revaluation surplus. This is potentially controversial, and the Framework addresses this specifically as chapter 5; paragraph 15 states that an asset or liability can exist even if the probability of an inflow or outflow of economic benefits is low. Answer: Relevance:. Discuss the key characteristics of an intangible asset? "[[^o|6~UOx>gcehMp[Jw.$]=sG9o~ODYh/]K3{{&.^`[^WB3o.TnFv*&)Z|qU=4o? Enhancing Qualitative Characteristic. Importantly, differences seen between the two tasks imply that the reduction in CDS scores was not merely a result of time passing between measurement points (Fig. Neutral information does not mean the information does not have an impact on decisions. - comparability (including consistency), if CGU impaired, allocate loss firstly to goodwill and then to other assets on a pro rata basis; cannot reduce CA of an asset below highest of FV less costs of disposal, value in use & zero. What will have relevance are the future amounts, such as the cost of the new equipment, and the savings that will occur when the old equipment is replaced. WebDifferentiate between fundamental qualities and enhancing qualities for qualitative characteristics of financial information, give example This problem has been solved! vi) Understandability. The quality of accounting information is directly related to information users in decision-making and its consequences. The four enhancing qualitative characteristics continue to be timeliness, understandability, verifiability and comparability. It means that different knowledgeable and observers could reach consensus that a particular depiction is a Faithful Representation. 9!qNVX"}T?VMo1Fz~eF. Both are important for gaining different kinds of knowledge. Faithful representation of information does not mean that that information must be accurate in all respects. 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