The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, i

Question

Gnesinka [82]

3 years ago

6

The hierarchy of qualitative characteristics of financial information require that, in order to be useful for decision making, i

nformation should possess the fundamental characteristics of?

Business

1 answer:

Effectus [21] · Answer 1 · 2022-09-01T22:34:21+03:00

Answer:

Relevance and faithful representation

Explanation:

The is a general consensus that accounting information must possess certain basic characteristics for it to be useful to the users of financial statement. The International Accounting Standards Board (1ASB) gave voice to this assertion when it prescribes some basic characteristics of accounting information which are 1. Understandability 2. Relevance 3. Reliability 4. Comparability. 5. Materiality. 6. <em>Faithful representation.</em> 7. Substance over Form. 8. Neutrality. 9. Prudence. 8. Timeliness. 9. Completeness.

Faithful representation is the requirement that financial statement must be accurate and must show a true and fair view of the position of the business.