F1:M1 Standards and Conceptual Framework Flashcards
1
Q
The most authoritative source of US GAAP is?
A
FASB Codification
2
Q
How are amendments incorporated into the FASB codification?
A
By releasing accounting standards updates
3
Q
Useful information in the FASB conceptual framework exhibit which fundamental qualitative charatertistics?
A
Faithful representation and relevance
4
Q
The concept of faithful representation include which three characteristics?
A
Neutrality, completeness and free from error. “Completely neutral is free from error”
5
Q
The concept of relevance includes which characteristics?
A
To be relevant, information should have predictive value and/or confirming value and must be material.
6
Q
What are the four enhancing qualitative characteristics?
A
comparability, verifiability, timeliness and understandability.
