The Conceptual Framework - 10% Flashcards
1
Q
What are the fundamental qualitative characteristics of financial information ?
A
- relevance
- faithful representation
2
Q
What are the enhancing characteristics of qualitative information
A
- comparability
- variability
- timeliness
- understandability
3
Q
What are the elements that an item should consist of to be recognised on the statement of financial position
A
Asset
Liability
Equity
Income
Or expense
4
Q
What are the 3 recognitions
A
- one of the elements of the financial statement
- relevant
- faithful representation
5
Q
What are the 4 measurements
A
Historical cost
Current cost
Fair value
Value in use
6
Q
What is a historical cost ?
A
Amount paid at transaction date
7
Q
What is a current cost ?
A
The amount that would be paid if the transaction occurred today
8
Q
What us fair value
A
The value of a similar asset or liability on the open market
9
Q
What is value in use
A
A discounted value of all future cash flows relating to the asset or liability
